Bank of Baroda revises proposed dividend upwards to Rs 2.85 per share

Small impact on net-worth and capital adequacy. The dividend payment is subject to shareholders' approval at the annual general meeting

Following the government’s nudge, the Board of Bank of Baroda (BOB) on Wednesday recommended a revised dividend at Rs 2.85 per equity share (of face value Rs 2) for the FY22.

Earlier on May 13, the board of Mumbai-based public sector lender had recommended dividend at Rs 1.20 per equity share for FY22.

On Tuesday, the board considered and approved the consequential changes (due to revision in dividend) in Audited Financial Results of the Bank for the quarter/year, ended March 31, 2022, BOB said in filing with BSE.

The dividend payment is subject to shareholders approval at the annual general meeting. The stock of BOB was trading 0.55 per cent higher at Rs 100.7 per share on BSE.

The money for the revised dividend is to be paid out of net worth. The revised net-worth would be Rs 61,521 crore, down from Rs 62,375 crore as of March 31, 2022. The revision in dividend payout will also mean a small change in capital adequacy ratio (CAR) to 15.84 with common equity tier (CET1) of 11.59 per cent from the previous CAR of 15.98 per cent (CET1 of 11.74 per cent).

The revision in audited results will not change net profit for FY22. The bank's net profit rose sharply to Rs 7,272 crore, as against Rs 829 crore in 2020-21.

Last week, the board of another public sector lender Bank of Maharashtra recommended a five per cent dividend for FY22. It had not recommended a dividend when it met in April 2022 to approve results for FY22.