Bank of Baroda on Thursday said that the shareholders of the bank have approved to issue shares worth Rs 12.60 billion to Government of India (President of India) on preferential basis.

After the present issue of 6,44,20,471 equity shares the government's shareholding will increase from 56.26% i.e 120,78,56,415 equity shares of Rs 2 each to 57.53% i.e 127,22,76,886 equity shares of Rs 2 each of the total share capital of the bank, the bank said.

Shares of the bank declined Rs 4.8, or 2.89%, to settle at Rs 161.20. The total volume of shares traded was 698,777 at the BSE (Thursday).