Bank of Baroda on November 18 informed the stock exchanges that its capital raising committee has given the nod to raise up to. ₹15,000 crore, consisting of not more than ₹5,000 crore through the issue of tier-II debt bonds and a maximum of ₹10,000 crore through infrastructure bonds.
The decision to raise the funds was finalized at the committee meeting held earlier in the day, the public sector lender said in a regulatory filing.
Referring to the planned fund raising through the route of tier II debt bonds, the bank said that the panel has cleared the issuance of ₹2,000 crore through 10-year tier-II bonds, and allowed the raising of another ₹3,000 crore through the greenshoe option.
“…Capital Capital Committee of our Bank in its meeting held today ie 18.11.2023 approved the issue of ₹2,000 crore Tier II/sub-debt bond with the green-shoe option to get another ₹3,000 crore in total ₹5,000 crore (10 years with a call option at the end of 5 years),” the filing stated.
The bank further decided to issue 7-year infrastructure bonds amounting to ₹2000 crore,” with a green-shoe option to cash in more ₹8000 crores in total the issue size of ₹10000 crore”, it added.
The development comes days after reports claimed that Bank of Baroda was considering raising capital ₹10,000 crores.
In the quarter end of September 2023, the state lender reported a net profit of ₹4,253 crore, higher by 28 percent compared to ₹4,001 crore in the year-ago period.
The total income of the bank rose to ₹32,033 crore in the second quarter, compared to ₹23,080 crore in the corresponding period of the previous fiscal.
In the last trading session on November 17, the lender’s share settled at ₹196.65 on the BSE, down 0.91 percent from the previous day.
Milestone Warning!Livemint tops charts as the fastest growing news site in the world 🌏 Click here to know more
Catch all Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates and Live Business News.
More or less
Updated: 18 Nov 2023, 18:43 IST
(tagsTo Translate) Bank of Baroda