Bank of Baroda seeks Rs 1,800-cr capital infusion from Government

Bank of Baroda seeks Rs 1,800-cr capital infusion from Central Government.

Bank of Baroda (BoB)Bank-of-Baroda-Logo has sought Rs 1,800-crore capital infusion from the Government for the current fiscal (2013-14). The Government has a stake of 55.4 per cent in BoB, which is currently the third largest public sector lender in the country.

“We have sought a capital infusion of Rs 1,800 crore. It is likely to be through preference shares,” the Chairman and Managing Director (CMD) of Bank of Baroda Mr S.S. Mundra told on the sidelines of the Federation of Indian Chambers of Commerce and Industry (FICCI) Banking Conclave.

As on end-June, BoB had a capital adequacy ratio of 12.70 per cent. Although there is “enough room available” for raising Tier II capital, the bank would do so only after the market stabilises, he said.

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