Q4 Results: Bank Of Baroda Posts Surprise Loss As Provisions Rise

Bank of Baroda has merged with state-run peers Dena Bank and Vijaya Bank. The lender had received Rs 5,042-crore infusion from the government ahead of the merger that became effective from April 1.

It will now start merging the balance sheets of all three lenders, which will help Bank of Baroda to better understand the nature of stress in Dena Bank and Vijaya Bank. Jayakumar said the net NPA ratio for the merged entity would have been around 3.65 percent for the January-March period.

The bank is also in the process of rationalising its international presence. Bank of Baroda, according to Jayakumar, has shut its businesses in the Bahamas and Bahrain. It is also pruning its business in China and is likely to completely exit the country in September. The bank is also in the process of closing businesses in Oman and South Africa.

In 2019-20, the bank plans to raise funds through several routes, including the employee share purchase scheme. Its board has approved a total fundraising cap of Rs 19,400 crore for the year, of which Rs 11,900 crore would come from common equity capital.