The Hindu : BoB's step towards ADR/rights issue

Online edition of India's National Newspaper
Tuesday, Dec 24, 2002

Business

Business

BoB's step towards ADR/rights issue

MUMBAI DEC. 23. Bank of Baroda (BoB) plans to go in for accounting practices under the U.S. Generally Accepted Accounting Principles (GAAP) as a step towards an American Depository Receipt issue or a rights issue.

"The bank will be seeking the board approval shortly for U.S. GAAP practices and positioning itself for an ADR/rights issue,'' the BoB Chairman and Managing Director, P. S. Shenoy, told reporters here today.

The rights issue or an ADR has been planned for next year by which time he expects the bank scrips that are now being quoted around Rs. 85, would appreciate and the book value would be around Rs. 135-145.

He said the bank was also awaiting the final approval from the Government to shore up its Tier II capital by Rs. 600 crores, thereby raising the capital adequacy ratio in excess of 12 per cent.

Mr. Shenoy said the acquisition of Bank of Benares had helped increase the bottom line by Rs. 30 crores, due mainly to appreciation of unbooked securities held by Bank of Benares.

The gross non-performing assets were likely to come down by nearly Rs. 300 crores to Rs. 4,000 crores this fiscal. This is likely to come down further by Rs. 800 crores if and when it is written off through fully provided loss assets, he said.

PTI

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