The board of state-run Bank of Baroda (BoB) has approved raising up to Rs 5,000 crore through bonds in financial year 2022-23, a regulatory filing stated on June 27.
The targeted amount would be raised in single or multiple tranches, the bank said, adding that it would be used for financing "infrastructure and affordable housing".
"Board of Directors in their meeting held today has approved the proposal of raising of long term bonds for financing of infrastructure & affordable housing to the tune of Rs 5,000 crores in single or multiple tranches during financial year 2022-23," it informed the stock exchanges.
"These bonds shall be senior, unsecured and will not form part of capital of the bank", the lender further noted.
The shares of BoB closed at Rs 100 a piece at the NSE today, up 0.05 percent as compared to the previous day's close.
The announcement of raising Rs 5,000 crore in FY23 comes days after the bank released its financial results for FY22. It reported a nine-fold jump in its profit after tax (PAT) at Rs 7,272 crore during the fiscal, as compared to a PAT of Rs 829 crore registered in FY21.
For Q4FY22, the PAT stood at Rs 1,779 crore as against a loss of Rs 1,047 crore incurred during Q4FY21 on the back of lower provisions and improved loan growth. Sequentially, the profit for the fourth quarter declined 19 percent as against Rs 2,197 crore profit logged during Q3FY22.
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