Bank of Baroda is planning to hire an advisor to value its properties and prepare a plan to monetise from them. The plan follows Reserve Bank of India’s recent amendment in rules for revaluing of assets. Revaluation of a bank’s property is to be part of common equity tier-1 (CET1) capital, at a discount of 55%. Earlier, this was treated as part of tier-2 capital. According to the bank’s MD P Jayakumar, the priority would be to generate capital through efficient use of assets and operations, over issuing fresh equity.
