BoB board approves setting off losses against share premium account
State-run Bank of Baroda has received board approval to set off accumulated loss of over Rs 11,048 crore against the share premium account of the bank.
The Board of Directors of the bank has approved the proposal on June 5, 2021, Bank of Baroda said in a regulatory filing.
The bank is to set off its accumulated losses of Rs 11,048.44 crore as of March 31, 2021, by utilising an equivalent amount standing to the credit of share premium account of bank as on the date of set off and take the same into account during current financial year 2021-22, it said.
The setting off is subject to necessary approval from shareholders and prior permission from the Reserve Bank of India, it added.
Share premium balance is a reserve that can only be used for the defined purposes. A share premium account reflects the difference between the face value of shares and the subscription price of the shares.
For fiscal year 2020-21, the bank reported a net profit of Rs 828.95 crore, up 52 per cent from Rs 546.18 crore a year ago.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
