Bank of Baroda to raise upto Rs 15,000 crore via tier-II debt, infrastructure bonds

MUMBAI – Bank of Baroda has received approval from the capital raising committee to raise upto Rs 5,000 crore through tier-II bonds. It has further received consent to raise not more than Rs 10,000 crore through infrastructure bonds.

The bank will issue 10-year tier-II bonds worth Rs 2,000 crore, with the greenshoe option to raise another Rs 3000 crore. Further, the bank will issue 7-year infrastructure bonds amounting to Rs 2,000 crore, with a greenshoe option to raise an additional Rs 8,000 crore.

News reports had earlier cited that the public sector lender is looking at raising about Rs 10,000 crore through infrastructure bonds.

As of September end, the bank’s capital adequacy ratio as per Basel-III requirements was 15.30%, compared to 15.25% a year ago. The CET 1 ratio stood at 11.57%, compared to 10.95% a year ago.

The additional tier-I ratio as of September end was 1.62%, compared to 1.86% a year ago.

For the quarter ended September, the bank reported an over 28% year-on-year growth in net profit to Rs 4,253 crore. The net interest income grew by 6.5% on year to Rs 10,831 crore.

On Friday, shares of Bank of Baroda ended about 1% lower on the National Stock Exchange at Rs 196.80.

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