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Bank Of Baroda’s Fundraising Plan Pumps Up Shares

Bank of Baroda shares rises 2.8 per cent after they announced fundraising and health cover plan last week

Photo Credit : Reuters

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Indian origin- Multinational bank, Bank of Baroda witnessed a 2.8 per cent rise in its share on 27th April following their Friday meeting, where the company announced their fundraising plan and Health cover for business correspondents. The shares were at Rs 47.70 in the Monday morning trade.

The company’s board has approved to raise the funds up to Rs 13,500 crore as an additional capital by FY21, informed public sector bank via a press release. It also said, nearly 66 per cent of the amount will be raised by way of common equity capital by various modes including qualified institutional placement (QIP). Whereas the remaining will come by the way of additional Tier-1 and Tier-2 capital instruments with an inter-changeability option.

However, the board’s decision on Saturday said to offer an ex-gratia payment of Rs 10 lakh to the family member of business representatives who lost their lives due to Covid-19. They also said in a statement to provide a health insurance cover of Rs 60,000 to the Bank correspondents.

Bank’s Executive Director Vikramaditya Singh Khichi said he considered the bank’s representatives as their extended family as they performed their duties on the economic front during Covid-19. He said, “They are our connect to the masses of India and a key part of our Bank’s efforts to deliver the benefits of the government’s financial package under PM Garib Kalyan Yojana (PMGKY), PM Kisan Samman Nidhi Yojana, pension etc.”

During these challenging times, they have been working very hard and putting in every effort to ensure that funds reach the beneficiaries in time. In recognition of their commitment and services as ‘Corona Warriors’ in the field, Bank of Baroda has taken these measures to safeguard their interests and for their welfare, Khichi said. 


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