Bank of Baroda inches up amid talks of stake sales in insurance arm

NEW DELHI: Shares of state-run Bank of Baroda (BoB) rose 1 per cent in Thursday’s trade after reports suggested the third-largest state-run lender was looking to reduce stake in its insurance and asset-management ventures.

Bloomberg, quoting people familiar with the matter, said that the Mumbai-based bank is seeking to pare its 44 per cent stake in IndiaFirst Life Insurance Co and the 49 per cent stake in in Baroda Pioneer Asset Management Co. The time frame for executing the sales was unknown.

Following the report, the stock rose 0.96 per cent to hit a high of Rs 162.80 on BSE. The stock retreated later and was trading flat at Rs 161.

At this price, the stock was trading at 0.88 times its book value. The bank reported a net loss of Rs 54 crore for the December quarter.

Andhra Bank owns 30 per cent of IndiaFirst, which was launched in 2010, with the UK’s Legal & General Group holding the remaining 26 per cent. Baroda Pioneer is a venture set up in 2008 between Bank of Baroda and Pioneer Investments, the Bloomberg report noted.