The Bank of Baroda board will decide on a tranche of financial instruments for affordable housing

16 Nov 2023 , 02:18 AM

In early trade on November 16, shares of Bank of Baroda Limited gained a small 0.2% to Rs 198, continuing their recent trend of increases on the exchanges. The company said that the issuing of debt instruments to raise tier I and tier II capital will be discussed and approved by the lender’s capital raising committee.

‘The meeting of the capital raising committee of our bank is scheduled to be held on November 18 to discuss and finalize the issuance of Tier I and Tier II debt capital instruments and long-term bonds for the financing of infrastructure and affordable housing within the board-approved capital raising plan’ , the bank stated in an exchange filing on November 15.

The amount that the public sector lender intends to raise via the infrastructure bonds has not been made public. Nonetheless, the proposal to issue Long Term Bonds, in one or more tranches throughout FY 2023–24 and beyond, if deemed necessary, for the financing of infrastructure and affordable housing, amounting to a maximum of Rs 10,000 crore, was approved by the board of directors during its meeting on October 11.

The bank posted a net profit of Rs 4,252.89 crore for the second quarter, which is up 28.3% from the same period the previous year thanks to stronger core income growth and better asset quality.

Gross non-performing assets (GNPAs) for the firm decreased from 5.31% of the loan book to 3.32% this year. Bad loans represented 0.76% of the loan book on a net basis, down from 1.16% during the corresponding quarter of the previous fiscal year.

Following media reports alleging that BoB World was involved in manipulating customer accounts, the RBI ordered the bank to stop accepting new clients using the BoB World mobile application in October. According to the study, the lender registered more mobile applications by connecting the contact details of several individuals.

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