The shares of Bank of Baroda on Wednesday hit an all-time high of ₹233.75, this after they were locked in an over three per cent upper circuit. The hike in share price comes after the lender invited buyers to sell stake in its New Zealand arm.
In a newspaper ad, the bank said it was seeking proposal for the ‘selection of investment banker for sale/disinvestment of Bank of Baroda’s entire 100 per cent stake in Bank of Baroda (New Zealand’. The lender has set 2 pm on January 24 as the deadline for the submission of proposal, Livemint reported.
The statement issued by Bank of Baroda said that all liabilities of BoB (New Zealand) are guaranteed by the parent bank, adding that any private firm/public limited company/limited liability partnership/firm across the world can participate in the tender process.
Bank of Baroda (NZ) is a wholly owned subsidiary of Bank of Baroda. The parent bank owns 94 overseas branches or offices in 17 countries. There are 8,200 domestic branches, out of which 4,942 are in rural and semi-urban areas, the report added.
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Bank of Baroda to raise ₹2,500 crore
On December 15, Bank of Baroda had announced it will generate fund worth ₹2,500 crore through Basel III bonds, PTI reported.
The lender’s Capital Raising Committee had approved a proposal to raise the first tranche of Basel III-compliant Tier II bonds having a base issue size of ₹1,000 crore with a green-shoe option to retain the over-subscription to the tune of ₹1,500 crore, the report added.
According to the Basel III capital norms, the banks must improve and strengthen their capital planning processes.
On November 4, Bank of Baroda said it reported 28 per cent rise in net profit to ₹4,253 crore in the second quarter.
