New Delhi, June 25 (PTI) Public sector lender Bank of Baroda plans to raise up to Rs 6,000 crore through various instruments, including preference issue of shares, rights issue or a follow-on public offer.

The board of the bank will seek approval from the shareholders in its annual general meeting to be held on July 13.

Bank of Baroda said it will seek nod of the shareholders to offer and issue equity capital in one or more tranches from domestic or overseas sources by tapping means such as qualified institutions placement (QIP), follow-on-public-offer, preferential issue, rights issue, ADR/GDR, private placement of equity or via compulsory convertible debentures.

The allotment of equity share will be in "such a way that the central government shall at all times hold not less than 52 per cent of the total paid-up equity capital of the bank," Bank of Baroda said in its annual report for 2017-18.

The bank suffered a net loss of about Rs 2,432 crore in 2017-18, mainly on account of higher provisions for bad loans, coupled with lower investment income.

In 2016-17, the bank had posted a net profit of Rs 1,383 crore.

"During the year, the bank provided Rs 14,212 crore towards NPAs on a larger pool as against Rs 7,680 crore in 2016-17," it said in the report.

However, the lender said the fiscal ended March 2018 remained as an eventful year with credit growth picking up during the second half of the year.

On asset front, Bank of Baroda said the banking sector continued to have overhang of stressed assets.

Bank's gross non-performing assets (GNPAs) increased to Rs 56,480 crore as on March 31, 2018 compared to Rs 42,719 crore a year earlier.

The gross NPAs and net NPA ratios were at 12.26 per cent and 5.49 per cent respectively as on March 31, 2018.

"With final stage of recognition being over after revised guidelines of RBI; resolution of large NPL accounts at NCLT expected to materialise during the FY 2019 and with a higher provision coverage, it should help Bank to move forward leaving behind the legacy of asset quality issues," MD & CEO P S Jayakumar said in his statement in the report.

On its life insurance joint venture IndiaFirst Life Insurance Co Ltd, the lender said the foreign partner Legal & General is looking to divest its stake and the process is underway.

IndiaFirst is a joint-venture between Andhra Bank, Bank of Baroda and financial services firm Legal & General group of the UK.

"In line with its global strategy, Legal & General has plans to divest its stake in the joint venture. The process for the same is underway," it added.

IndiaFirst commenced its business operations on November 16, 2009 and remained as the fastest life insurance company to break even in the 5th year of operations.

Ranking 14th among the private sector life insurers in terms of individual new business, the company's asset under management stood at Rs 12,622 crore as on March 31, 2018.

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