State-owned Bank of Baroda (BoB) on November 18 said in an exchange filing that it plans to raise up to Rs 15,000 crore through tier-II and infrastructure bonds to fund business growth.
The capital raising committee of the bank met earlier today and decided to raise Rs 5,000 crore through tier-II bonds and Rs 10,000 crore through infrastructure bonds, it said in an exchange filing.
Bank of Baroda’s regulatory filing read: “The capital raising committee of the bank in its meeting held on Saturday has approved the issuance of Rs 2,000 crore tier II/sub-debt bond with the greenshoe option to raise another Rs 3,000 crore totalling Rs 5,000 crore (10 years with a call option at the end of five years.”
It added: “The bank has further decided to issue infrastructure bonds amounting to Rs 2,000 crore with a greenshoe option to raise an additional Rs 8,000 crore totalling the issue size of Rs 10,000 crore (tenure up to seven years).”
The PSU lender on November 4 reported a net profit of Rs 4,252.89 crore for the September quarter of 2023-24, up 28.3 percent from last year, on the back of improved asset quality and healthy core income growth. The bank's net interest income (NII) grew 6.4 percent year-on-year to Rs 10,831 crore.