Bank of Baroda board gives nod to raising Rs 10,000-crore via long-term bonds

The lender, in an exchange notification said that the board in the meeting held on October 11 approved the fundraising plan.

The Bank of Baroda board on October 11 gave the go-ahead to raise up to Rs 10,000 crore through long-term bonds for financing infrastructure and affordable housing.

“The board of directors in its meeting held today has approved the proposal of raising Long Term Bonds for financing of infrastructure and affordable housing aggregating to a total size up to Rs 10,000 crores, in single or multiple tranches during FY 2023-24 and beyond, if found expedient,” the bank said in an exchange filing.

Also read: Bank of Baroda drops 2% after RBI strike on BoB World App

On October 10, the Reserve Bank of India barred the bank from onboarding customers through BoB World, the lender’s digital banking app following concerns over the “manner of onboarding.

On the same day, HSBC downgraded the stock to “old” from “buy” with a target price of Rs 220.

Motilal Oswal Securities, however, said BoB had reported robust business growth, with both advances and deposits growing rapidly.

Retail loans continued to drive the overall loan growth, while internal books too saw strong trends. The domestic brokerage has maintained “buy” on the stock in a report on October 8.

Q2 update

Bank of Baroda reported a 17 percent on-year (YoY) growth in total advances at Rs 10.3 lakh crore, with domestic advances up 16.6 percent on-year. International book rose 21 percent YoY (6.4 percent QoQ). Domestic retail loans grew 22.5 percent YoY (5.4 percent QoQ), as per the Q2 provisional business update.

Total deposits grew 14.6 percent on-year to Rs 12.5 lakh crore, with domestic deposits up 12 percent on-year. International deposits jumped 32 percent on-year. Domestic CASA deposits jumped 4.4 percent on-year.

At 1.43 pm, the stock was trading at Rs 207.60 on the National Stock Exchange, down 3.13 percent.