Public sector Bank of Baroda today said its board will meet on February 9 to decide on allotment of shares on a preferential basis to the government in lieu of a capital infusion of Rs 5,375 crore.
The bank said a meeting of the board of directors will be held on February 9 to consider and approve it.
"The board will consider and approve the issue of equity shares on preferential basis to government up to Rs 5,375 crore," the bank said in a regulatory filing.
The capital infusion is part of the government's massive bank recapitalisation plan to the tune of Rs 2.11 lakh crore in the next two years which is aimed at improving public sector banks' fiscal situation that is mostly hit due to huge amount of bad assets accruals over the years.
As per the recapitalisation plan of Rs 2.11 lakh crore, Rs 80,000 crore is to be raised by floating bonds by lenders.
Finance Minister Arun Jaitley in his Budget speech for 2018-19 yesterday said that the recapitalised banks will now have a greater ability to support growth.
"This recapitalisation will pave the way for the public sector banks to lend additional credit of Rs 5 lakh crore," he said.
Stock of Bank of Baroda traded at Rs 1.54 per cent up at Rs 154.65 apiece on BSE.
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