Finmin nod to BoB for public offer in Sept

The finance ministry has given the go-ahead to Bank of Baroda (BoB) to tap the capital market in September for funding its expansion plans.

BoB is likely to sell 7.1 crore shares to the public, which will dilute government holding in the bank from 66% to 53%, a bank official said.

Going by the present market price of Rs 207-209, the bank is expected to raise close to Rs 1,500 crore.

BoB will be the sixth PSU bank to tap the capital market in the last two years. Since January 2004, five banks - Punjab National Bank, Allahabad Bank, Dena Bank, Oriental Bank of Commerce and Syndicate Bank - have come out with public issues.

BoB is planning to expand presence in the US, UK, UAE, Singapore, Thailand, Malaysia, Sri Lanka, Male, Bangladesh and West Indies.