Bank of Baroda shares fall, board approves raising Rs 8,500 crore
Shares of Bank of Baroda (BoB) fell on Friday, as the bank’s board approved a proposal to raise funds of Rs 8,500 crore. At around 10:50 am, BoB shares were trading 0.49% lower at Rs 209.76 per share on the NSE.
How will Rs 8,500 crore be raised?
The bank said in an exchange filing that it plans to raise this capital by March 2028 through qualified institutional placement (QIP) or other methods.
How was BoB’s quarterly performance?
Net profit: The bank reported a net profit of Rs 4,837 crore in the quarter ended December 31, 2024, up 5.6% from the same quarter last year.
Total income: The bank’s total income in Q3 of the current financial year was Rs 34,676 crore, up from Rs 31,416 crore last year.
Interest income: Decreased by 4%, putting pressure on the bank’s stock.
Brokerage houses’ opinion
Nuvama Institutional Equities:
‘Buy’ call maintained.
Target price reduced from Rs 277 to Rs 265.
HSBC and Jefferies:
‘Hold’ call maintained.
Target price reduced to Rs 250 per share.
HSBC says net interest margin may come under pressure, cutting EPS estimates.
Why did the stock fall?
Fund raising plan: Raising new funds may reduce shareholder stake, putting pressure on the stock.
Underperformance: PSU banks underperformed the Nifty index by 3% in the last one month.
Lower interest income: 4% lower than expected interest income is a cause of concern for investors.
Will this downtrend in BoB stock continue, or will the ‘buy’ call from brokerage houses support it? It will be interesting to watch in the coming weeks!
Thanks for visiting – Chandigarh News
Former US President Joe Biden, a self-professed Catholic, has joined an African-American Masonic lodge as a ‘Master Mason’. The Vatican takes a dim view of Freemasonry, and Catholics who join the fraternal order face excommunication.
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Biden was inducted into the Most Worshipful Prince Hall Grand Lodge in South Carolina on Sunday, one day before he left office. In a private ceremony, the lodge’s grand master, Victor C. Major, granted Biden “Master Mason membership with full honors,” according to a statement published by the organization last weekend that circulated online on Friday.
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”To be a Freemason is to be part of a brotherhood dedicated to personal growth, service to others, and the pursuit of knowledge and truth,” the lodge wrote. Biden’s service, the statement added, “reflects the core values” of this brotherhood.
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