Bank of Baroda Plans to Raise Rs 5,000 Crore in Additional Capital Through Debt Instruments


Bank of Baroda (BOB),(3rd Largest PSU Bank), has announced its plan to raise additional capital of up to Rs 5,000 crore through debt capital instruments, according to the Board meeting held today on June 2, 2023. The Board of Directors of Bank of Baroda approved the capital raising, which will be done through the issuance of Additional Tier I (AT I) or Tier II debt capital instruments.

The bank's Board has provided the flexibility to raise capital either in India or overseas, in suitable tranches, by the end of the ongoing financial year 2023-24, and potentially beyond if deemed beneficial. Bank of Baroda has emphasized that it will raise the additional capital when market conditions are favorable.

In terms of financial performance, Bank of Baroda witnessed an impressive surge in net profit during the March 2023 quarter. The net profit soared by a remarkable 168.4% to reach Rs 4,775 crore, compared to Rs 1,779 crore in the same period last year. Moreover, the net interest margin (NIM), a key measure of profitability, expanded by 45 basis points year-on-year, rising to 3.53% in Q4 FY23 from 3.08% in Q4 FY22.

For the financial year 2022-23, Bank of Baroda's net profit experienced a noteworthy year-on-year increase of 94% to reach Rs 14,110 crore, while the net interest margin (NIM) grew by 28 basis points to 3.31%.


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