Banco do Brasil Shareholders Approve Plan to Boost Capital Limit

Banco do Brasil SA shareholders approved a plan to boost the lender’s capital limit to 150 billion reais ($30 billion) as rising delinquencies on agricultural loans weigh on profit.

The bank has no plans to immediately raise fresh capital, but sees the higher limit as a prudent move given strains in its loan portfolio, a person familiar with the matter said. The government-controlled lender has already taken steps to bolster capital ratios, including cutting its dividend, and sees a capital raise as a last resort, the person said, asking not to be identified discussing non-public information.