Bank of Baroda shares hit 52-week high after PSB invites buyers to sell 100% stake in New Zealand arm

The country’s second-largest PSB said in a newspaper advertisement, “Request for proposal for selection of investment banker for sale/disinvestment of Bank of Baroda’s entire 100 percent stake in Bank of Baroda (New Zealand ).” The bank has set the deadline for submission of the proposal at 2:00 pm on January 24.

Also Read: Bank of Baroda (BoB) share price at 9-year high. Experts see more rally

“All liabilities of Bank of Baroda (New Zealand) Ltd are guaranteed by its parent bank,” said the bank. “Any private/ public limited company/ LLP/ Firm across the globe can participate in the tender process,” said the statement. 

According to the lender, Bank of Baroda (New Zealand) is a wholly owned subsidiary of Bank of Baroda. Bank of Baroda has 93 overseas branches or offices across 17 countries 8,200 domestic branches, of which 4,942 rural and semi-urban.

According to stock market experts, Bank of Baroda board has declared to generate fund to the tune of ₹2500 crore via Basel III bonds. BoB shares hit a nine-year high mark earlier this month and the bond was the major reason behind the rally. They said that a bank issues such long-term maturity bonds when they see credit growth. 

The PSB has hit back-to-back 52 week highs this month continuing the rally that picked up in early 2023. Experts added that BoB is a ‘portfolio stock’ and one should keep this stock for at least one to two years.

Bank of Baroda Share Price Today

Shares of Bank of Baroda opened at ₹225.45 and gained 3.61 per cent to hit a fresh 52-week high mark of ₹233.75 against a previous close of ₹225.15 apiece on the BSE. Shares settled 3.04 per cent higher at ₹232 apiece on the BSE.

Bank of Baroda reported a net profit of ₹4,252.9 crore in the second quarter of fiscal year 2023-24 (Q2FY24), marking a surge of 28.4 per cent as against the year-ago period. The jump was credited to robust loan growth.

The public sector lender’s net interest income (NII) grew by 6.5 per cent on-year during the quarter under review, as it came in at ₹10,830.70 crore, as against ₹10,174.5 crore in the year-ago period.

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Published: 27 Dec 2023, 05:23 PM IST