The Board of Bank of Baroda will be held on 13 February. In this, a decision will be taken on the proposal to raise funds in many ways including qualified Institutional Placement (QIP) issue. The bank shares have fallen by 1.42 per cent on 3 February today and this stock has closed at Rs 207.85 on BSE. The company’s market cap is Rs 1.07 lakh crore.
Bank of Baroda said in the exchange filing, “The board meeting is scheduled to be held on 13 February 2025, in which other things, as well as by 31 March 2026 and even after that in the appropriate installments, through many ways including common equity capital, including QIP. The plan to raise capital will be considered.
CNBC-TV18 had earlier stated that the government has approved a plan to raise an amount of Rs 10,000 crore for five public sector banks through QIP route. Apart from Bank of Maharashtra, four other lender, Punjab and Sindh Bank, Indian Overseas Bank, UCO Bank and Central Bank of India have received approval to raise funds.
Sources told CNBC-TV18 that these lender can raise money in small installments from the fourth quarter of the financial year 2025. Sources said that the Department of Disinvestment and Public Asset Management (DIPAM) has also received an order to sell stake in these lenders through the Offer for Sale (OFS) route. The government is trying to complete 25% minimum public shareholding in these PSU banks by August 2026.
According to the latest shareholding pattern on BSE, the government holds 79.6% stake in Bank of Maharashtra at the end of December quarter, while 98.25% stake in Punjab & Sindh Bank, 96.38% stake in Indian Overseas Bank, 95.39% stake in UCO Bank and Central Bank of India has a 93.08% stake. Based on the current share price, the additional share of the government in these five lenders is around ₹ 50000 crore.