Indian state-owned lender Bank of Baroda has unveiled plans to raise INR50bn ($690m) by selling shares and bonds.
The move comes after the lender reported a net loss of INR10.5bn in the quarter that ended on 31 March 2021. In the same period a year ago, the bank posted a profit of INR5.06bn.
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According to a Bloomberg report, Bank of Baroda plans to secure up to INR20bn by selling shares and another INR30bn through bonds that can qualify as capital.
This comes after the bank secured INR45bn from institutional investors in March.
In a filing, Bank of Baroda attributed the quarterly loss to the shift to new tax structure and on account of DTA reversal.
The statement said: “Excluding the impact of the change in tax regime, Bank would have reported profit after tax of Rs 2,267 crore [INR 22.67bn] in Q4FY21.”
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By GlobalDataAt the end of the March quarter, the net loss of the lender stood at INR7.4bn on a consolidated basis. Provisioning for bad loans also soared by 44% on a year-on-year period.
The bank’s capital adequacy (CRAR) at the end of the quarter was 14.9%.
Notably, a three way merger in 2019 made Bank of Baroda one of the largest state-owned lenders in the country.
The combination, which involved Dena Bank and Vijaya Bank merging operations into Bank of Baroda, became effective on 1 April 2019.
