State-owned Bank of Baroda on Thursday (December 21) said it raised ₹2,500 crore on December 20, 2023, through the issuance of Basel III compliant tier II Bonds Series XXV.
The bank received a total of 88 bids amounting to ₹6,803 crore against the base issue size of ₹1,000 crore (which translates to 6.8 times the base issue size) and a greenshoe option to retain oversubscription up to ₹1,500 crore.
The bank accepted bids for ₹2,500 crore at a coupon of 7.75% per annum, according to a stock exchange filing.
These bonds are unsecured, listed, rated, subordinated, non-convertible, taxable, and redeemable, having a tenure of 10 years from the deemed date of allotment with a five-year call option.
The allotment of these bonds took place on December 21, 2023. Under Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.
Bank of Baroda reported an operating profit of ₹8,020 crore, up 33% from the year-ago period. The lender's profit after tax came at ₹4,253 crore, up from ₹3,313.4 crore in the corresponding period in the previous year. As per a CNBC-TV18 poll, the PAT was projected as ₹3,921.5 crore. The bank had reported a net profit of ₹4,070.1 crore for the April to June 2023 quarter.
The lender's net interest income or NII — the difference between the revenue generated expenses that occurred during the period — rose 6.5% to ₹10,831 crore. This was below the estimated ₹11,058.8 crore. In the July-September quarter last year, the NII came at ₹10,174.5 crore.
Shares of Bank of Baroda Ltd ended at ₹224.75, up by ₹5.55, or 2.53%, on the BSE.
(Edited by : Shoma Bhattacharjee)
