The state-owned Bank of Baroda (BoB) plans to issue bonds worth up to Rs 15,000 crore to fund corporate expansion, on Saturday.
This significant fundraising effort is divided into two parts: To begin, the committee has approved the issue of tier-II debt bonds worth Rs 5,000 crore. This includes Rs 2,000 crore of 10-year tier-II bonds and another Rs 3,000 crore made possible through the greenshoe option.
The issue of infrastructure bonds is the second component of this financial plan. According to the filing, Bank of Baroda intends to raise Rs 10,000 crore through this approach, beginning with a Rs 2,000 crore issuance of 7-year infrastructure bonds, with a greenshoe option for an additional Rs 8,000 crore.
This action comes on the heels of the bank’s recent clearance, on October 11, to raise Rs 10,000 crore exclusively for affordable housing and infrastructure projects.
The bank’s financial position has improved, with a net profit of Rs 4,253 crore reported in the quarter ending September 2023, a 28 percent improvement over the previous year’s net profit of Rs 4,001 crore.
Furthermore, its overall income increased to Rs 32,033 crore in the second quarter, up from Rs 23,080 crore in the previous fiscal year’s similar period.