Bank of Baroda intends to issue bonds worth up to Rs 15,000 crore

20 Nov 2023 , 01:02 PM

In an exchange filing on November 18, the state-owned Bank of Baroda (BoB) announced its intention to raise up to Rs 15,000 crore through tier-II and infrastructure bonds in order to finance corporate expansion.

The bank stated in an exchange filing that its capital raising committee met on saturday and resolved to issue Rs 10,000 crore through infrastructure bonds and Rs 5,000 crore through tier-II bonds.

‘In its meeting held on Saturday, the capital raising committee of the bank approved the issuance of Rs 2,000 crore tier II/sub-debt bond with the greenshoe option to raise another Rs 3,000 crore totaling Rs 5,000 crore (10 years with a call option at the end of five years),’ according to a regulatory filing from Bank of Baroda.

‘The bank has decided to issue infrastructure bonds amounting to Rs 2,000 crore with a greenshoe option to raise an additional Rs 8,000 crore, totaling the issue size of Rs 10,000 crore (tenure up to seven years),’ the statement continued.

On November 4, the PSU lender announced a net profit of Rs 4,252.89 crore for the September quarter of 2023–24. This represents a 28.3% increase over the same period the previous year, driven by stronger core income growth and better asset quality. Net interest income (NII) for the bank increased to Rs 10,831 crore, or 6.4%, year over year.

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