State-run Bank of Baroda (BoB) has received board approval to set off accumulated loss of over ₹11,048 crore against the share premium account of the bank.
The board of directors of the bank approved the proposal on June 5, BoB said.
The bank is to set off its accumulated losses of ₹11,048.44 crore as of March 31 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 FY22, it said.
The setting off is subject to approval from shareholders and prior permission from the RBI.
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 FY21, the bank reported a 52% rise in net profit to ₹828.95 crore.
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