Shares of Bank of Baroda Limited traded flat, gaining a marginal 0.2 percent to Rs 198 in morning trade on November 16, extending gains for the seventh trading session in a row on the bourses. The company declared that the lender's capital raising committee will discuss and approve the issuance of debt instruments to raise tier I and tier II capital.
"The meeting of the capital raising committee of our bank is scheduled to be held on November 18 to discuss and finalize the issuance of Tier I and Tier II debt capital instruments and long-term bonds for the financing of infrastructure and affordable housing within the board-approved capital raising plan", the bank said in an exchange filing on November 15.
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The public sector lender hasn't disclosed the amount it plans to raise through the infrastructure bonds. However, on October 11, the board of directors in its meeting approved the proposal of raising Long Term Bonds for the financing of infrastructure and affordable housing aggregating to a total size of up to Rs 10,000 crore, in single or multiple tranches during FY 2023-24 and beyond, if found expedient.
Also read: Bank of Baroda board gives nod to raising Rs 10,000-crore via long-term bonds
In the second quarter, the bank reported a net profit of Rs 4,252.89 crore, up 28.3 percent from last year, on the back of improved asset quality and healthy core income growth.
The lender's gross non-performing assets (GNPAs) stood at 3.32 percent of the loan book, down from 5.31 percent a year ago. On a net basis, bad loans were 0.76 percent of the loan book against 1.16 percent in the same quarter of the previous fiscal.
In October, the RBI ordered the bank to halt the recruitment of new customers through this BoB World mobile application after media reports said that BoB World was involved in tampering with customer accounts. The report alleged that the lender linked the contact details of different people to increase the number of mobile application registrations.
Read more: Bob World app case: A look at the issue and the regulatory action it triggered
Following this, in an exclusive report on October 18, Moneycontrol revealed that BoB had suspended more than 60 employees, which included 11 Assistant General Managers (AGMs).
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