The lender is looking to buy out assets worth around 6,000 Rs crore from the fund-starved non-banking finance companies this quarter.
Bank of Baroda Shares climbed over 4 percent on BS Today, a day after the public lender said it's capital raising committee has approved raising up to 2,150 crore Rs in Tier-I, II bonds.
Meanwhile, the bank is looking forward to buying out assets worth around 6,000 crore Rs this quarter fund-starved non-banking finance companies, sources report.
The lender had already bought around 3,500 crore Rs loans from NBFCs in Jun, while for the year March 2019, it had purchased assets worth around 10,000 crore Rs from NBFCs/housing finance companies.
The bank is in discussions will NBFCs/HFCs such as PNB Housing Finance, Indiabulls Consumer Finance, IIFFL, Annapoorna MFI among others for this, the report further said.
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In the budget, the government had said it would provide a one-time 6 months' partial credit guarantee to public sector banks for the first loss of up to 10 % on their purchases of high-rated pooled NBFC assets, amounting to Rs 1 trillion.
The lender is also targeting to disburse 1,000 crore Rs under the Reserve Bank's recently introduced co-origination model between banks and non-banking financial companies, this quarter and has already lent 50 crore Rs to Srei Finance and Edelweiss Financial.
The bank is also in talks with 10 more NBFCs and micro-finance companies, including Cholamandalam, Indiabulls Housing, Adani Capital, IIFL Finance, Hero Housing, and Centrum Housing, among others for this.
Around 1000 hours (IST), shares of Bank of Baroda traded 2.89 % higher at 97.80 Rs on BSE.
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