Bank of Baroda to Raise ₹7,500 Crore Through AT1 and Tier 2 Bonds

Bank of Baroda

Bank of Baroda has announced its plans to raise an additional ₹7,500 crore through the issuance of Additional Tier 1 (AT1) and Tier 2 bonds, with board approval secured for the financial year 2024-25. These bonds will be issued in multiple tranches and include an interchangeability option in India and overseas.

In a filing to the Bombay Stock Exchange (BSE), the public sector lender emphasised that the capital will be raised “when the market is conducive.”

In addition, the board has also approved raising ₹10,000 crore through long-term bonds. These funds will be allocated to finance infrastructure initiatives and affordable housing projects, also within the financial year 2024-25.

Also read: Bank of Baroda Unveils Nationwide Hackathon on Gen AI with Microsoft

Financially, Bank of Baroda reported an 8.1% increase in net interest income (NII) for the year ended 2024, reaching ₹44,722 crore, compared to ₹41,355 crore in the previous year. The bank’s capital adequacy ratio (CAR) also improved slightly, rising to 16.31% in 2024 from 16.24% in 2023.

In other developments, Vijay Dube was elected as the shareholders’ director, effective July 9, 2024.

Bank of Baroda’s strategic capital-raising efforts and steady financial performance reflect its commitment to supporting growth and stability in the banking sector.

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