Solan News: Baghat Bank Begins Share Sale to Overcome Losses and Lift Capping
Baghat Bank has initiated the sale of its shares to recover from losses and remove withdrawal capping. The process, which started on Tuesday, has already seen people investing around ₹1.6 lakh in shares within two days. Several customers have even approached bank officials to buy shares using their FDRs. The bank will now send the proposal to the RBI for formal approval.
Currently, each share is priced at ₹50, with a minimum investment of ₹500, meaning investors must purchase at least 10 shares. Many local businessmen and existing shareholders have shown interest. The bank has approximately 11,000 shareholders who are eligible to buy new shares.
The RBI had advised Baghat Bank to sell shares, prompting the bank to take this step. Bank managers are personally meeting local businessmen to encourage them to invest.
The bank’s financial position is currently weak. Capping was imposed on October 8 last year, allowing customers to withdraw only ₹10,000. Although the bank’s NPAs have decreased from ₹138 crore to ₹114 crore, increased income from share sales will help lift the capping.
Baghat Bank’s AGM is scheduled for February 17, with around 399 delegates, officials, and staff attending. Discussions will include lifting the capping, measures to overcome losses, and encouraging delegates to buy shares.
– Raj Kumar Kashyap, Managing Director, Baghat Bank
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