Bank of Baroda to raise funds via QIP on February 13

“The Board meeting is scheduled to be held on 13th February 2025 which will inter-alia consider the capital raising plan by way of common equity capital by various modes including QIP in suitable tranches up to 31.03.2026 and beyond, if found expedient. This will be subject to applicable statutory/regulatory approvals,” BoB said in an exchange filing.

CNBC-TV18 had earlier reported that the government had approved a fund raising plan to the tune of ₹10,000 crore for five state-run lenders through the QIP route.

Other than Bank of Maharashtra, four other lenders, Punjab & Sind Bank, Indian Overseas Bank, UCO Bank and Central Bank of India have received approval to raise funds.
These lenders may raise funds in small tranches starting the fourth quarter of financial year 2025, sources told CNBC-TV18.The sources further added that the Department of Disinvestment and Public Asset Management (DIPAM) has also received a mandate to sell stake in these above mentioned lenders through the Offer For Sale (OFS) route.

The government is trying to meet the 25% minimum public shareholding norms within these PSU Bank by August 2026. State-run lenders are under the administrative control of the Department of Financial Services.

The government holds a 79.6% stake in Bank of Maharashtra, while it owns a 98.25% stake in Punjab & Sind Bank, 96.38% stake in Indian Overseas Bank, 95.39% stake in UCO Bank and 93.08% stake in Central Bank of India at the end of the December quarter, as per the latest shareholding pattern on BSE.

Based on the current share price, the excess government stake in these five lenders stands at nearly ₹50,000 crore.

Shares of Bank of Baroda Ltd. are trading 1.45% lower at ₹207.79.