BOB Approves Capital Raise of Up to Rs 5,000 Cr. through Debt Instruments
Bank of Baroda, a leading public sector lender, announced on Friday that its board of directors has given approval for raising additional capital through debt instruments. The bank aims to raise funds worth not more than Rs 5,000 crore through either additional tier I or tier II debt capital instruments.
In a strategic move, the Bank of Baroda has provided the option of interchangeability for these instruments, allowing them to be utilized in India or outside the country. This flexibility will be exercised in suitable tranches, with the deadline set for the end of the current financial year, i.e., March 31, 2024. Furthermore, if deemed expedient, the interchangeability option can be exercised even after the specified date.
The bank emphasized that the capital raising activity will be executed when market conditions are favorable. This prudent approach ensures that the bank maximizes the benefit from the capital infusion.
Bank of Baroda also shared its financial performance for the quarter ending on March 31, 2023. The bank reported an impressive 168 percent rise in net profit year-on-year, reaching Rs 4,775 crore. This figure surpassed CNBC-TV18’s poll estimate of Rs 4,029.9 crore and was significantly higher than the net profit of Rs 1,779 crore recorded in the previous quarter of the previous year.
In terms of total business, Bank of Baroda displayed robust growth, with a 16.6 percent year-on-year increase to Rs 21.73 lakh crore.
As of the latest trading session, Bank of Baroda’s shares are trading 0.8 percent higher at Rs 186.25.
About Bank of Baroda:
Bank of Baroda, located in Vadodara, Gujarat, is a prominent Indian public sector bank. It holds the distinction of being the second largest public sector bank in India, following the State Bank of India. Boasting an extensive customer base of 153 million, the bank’s total business volume amounts to a remarkable US$218 billion. Moreover, the Bank of Baroda proudly maintains a global footprint with 100 overseas offices.
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