BoB May Raise Tier-I Capital Through Rights, ADR Issue

Mumbai, December 23: | Updated: Dec 24 2002, 05:30am hrs
Bank of Baroda (BoB) is contemplating a rights or American Depositary Receipts (ADRs) issue to augment its Tier-I capital by March 2003, BoBs chairman and managing director, PS Shenoy said, on the sidelines of a press conference to announce the launch of its international debit card, with Visa International.

We are planning to double our balance sheet size by 2005-06 to gain from the increased market share he said. BoBs balance sheet size as on March 31, 2002 stood at around Rs 71,000 crore.

If the economy and market are on the right track, we may be in a position to offer the rights issue or an ADR by March 2003, Mr Shenoy said. He expects BoBs share price which is at present around Rs 85 to appreciate and the book value to be around Rs 135-145 by March 2003.

BoB is currently planning to go in for accounting practices under US GAAP as a step towards issuing an ADR issue. We will put up this plan to our board shortly, Mr Shenoy added.

On its international debit card, Mr Shenoy said that BoB would target 20 lakh card-holders in three years time. The card, which has been launched on Monday, will be offered only in three of its Mumbai branches initially. Our plan is to get this debit card to the common man in metros as well as in small towns in the future, Mr Shenoy added. Annual membership for the card will be Rs 100. However, BoB has decided to offer the card free of cost in its first year of existence. BoBs fully-owned subsidiary BoB Card will manage the card business, Mr Shenoy added.