Bank of Baroda decides to raise ₹13,500 crore from the market on a day that financial stocks get battered

• The Board of Directors at one of India's top state-owned banks has decided to raise over $1.7 billion from the market.
• The fund raising will include qualified institutional placement to shore up tier-I capital.
• The decision is subject to regulatory approvals.

Bank of Baroda's Board of Directors have approved a plan to raise ₹13,500 crore, over $1.7 bilion, from the market to shore up its coffers as the coronavirus pandemic has brought the economy to a standstill.

This will be the breakup of the fund raising:

Common equity capital including QIP	₹9,000 crore
Fund raising with interchangeability option	₹4,500 crore

This will be subject to applicable statutory 1 regulatory approvals, the company statement added.

The decision has come in on a day that the financial stocks were battered in trade. The Nifty Bank index slumped over 3% on Friday (April 24).

These were the top ten losers among banking stocks in trade today.

IDFC First Bank	-6.33%
IndusInd Bank	-5.60%
Axis Bank	-5.59%
ICICI Bank	-4.50%
Federal Bank	-4.40%
Bank of Baroda	-4.23%
SBI	-3.50%
PNB	3.04%
HDFC Bank	-1.88%
Bandhan Bank	-1.02%

The prospects for India's financial firms is going from bad to worse even as the economy is getting reopened slowly. "Lower credit offtake and significantly higher credit cost for FY21/FY22 have led to FY21E earnings cuts of 9-70% for financials we cover, with diversified financiers impacted the most. Subsequently, we lower our target price (for bank stocks) by 32% on average," BNP Paribas said in a report last week titled 'Down but not out".

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