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.
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