Bank of Baroda (BoB) has announced that it will be going
for a of 9.1 crore equity shares in January 2005 to
raise around Rs1,500 crore.
bank board has approved an offering of 9.1 crore shares
of Rs10 face value and we have approached the government
and Reserve Bank of India for their approvals. We hope
to visit the market in January or February next year,
said PS Shenoy, BoB chairman and managing director said
at a press conference.
bank wants to get ready for meeting the Basel II norms
for operational and market risks, and business expansion,
said Shenoy. The public sector bank wants to have a
sufficient cushion for capital adequacy post Basel II
guidelines when they become operational, he added.
the capital adequacy ratio was 13.97 per cent and with
the market and operational risks in place, it could
come down to 10.5 per cent.
offer, the governments stake in the bank would
come down to
51 per cent. The public offer would help the bank to
shore up its capital adequacy ratio further, he said
adding BoB has no plans to raise the tier II capital
by issuing bonds.