Bank of Baroda to Raise ₹7,500 Crore Through AT1 and Tier 2 Bonds

Bank of Baroda (BoB) plans to raise up to ₹7,500 crore through Additional Tier-I (AT1) and Tier-II bonds to meet regulatory requirements and support business growth. This capital will be raised in multiple tranches up to March 31, 2025, and beyond, depending on market conditions.

Capital Raising Details

Approval and Strategy

The board of directors approved raising additional capital up to ₹7,500 crore through AT1 and Tier-II bonds, with an option to issue these in the overseas market if favorable.

Previous Capital Raising

In FY23, BoB raised ₹2,474 crore through AT1 capital and ₹5,000 crore through Tier-II capital.

Capital Adequacy

As of March 2024, BoB’s capital adequacy ratio (CAR) was 16.31%, with a common equity Tier-I ratio of 12.54%, additional Tier-I capital at 1.53%, and Tier-II at 2.24%.

Financial Performance

Loan Book Growth

BoB’s loan book grew by 12.5% year-over-year, reaching ₹10.9 trillion by the end of March 2024.

Net Interest Income

For FY24, net interest income (NII) increased by 8.1% to ₹44,722 crore from ₹41,355 crore in the previous year.

Stock Performance

The bank’s stock price rose by 1.35%, closing at ₹273.7 per share on July 5, 2024.

Ratings and Market Outlook

Moody’s Rating

Global rating agency Moody’s affirmed a “Baa3” long-term local and foreign currency bank deposits rating for BoB in June 2024. The agency expects BoB’s capitalization to remain stable over the next 12-18 months, supported by improving profitability despite strong loan growth and higher risk-weight requirements for unsecured lending.

Favorable Market Conditions

The capital raising will proceed based on favorable market conditions to ensure optimal timing and cost-effectiveness.

Infrastructure and Housing Bonds

Additional Capital Raising

The board also approved raising ₹10,000 crore through long-term bonds for infrastructure and affordable housing projects during FY 2024-25 and beyond.

Key Appointments

Shareholders’ Director

Vijay Dube was elected as the shareholders’ director, effective July 9, 2024.

Piyush Shukla

Recent Posts

Clean Energy, Global Minds: Inside the New India–Netherlands Hydrogen Fellowship

India has taken another important step towards clean energy leadership. On February 10, 2026, India…

25 mins ago

Which is the Largest Glacier in the Himalayas?

Did you ever imagine that huge rivers of ice exist high in the mountains, slowly…

47 mins ago

MeitY Launches SATYA to Modernise STQC Lab Operations

India’s push towards transparent and citizen-friendly digital governance gained momentum on February 9, 2026, when…

59 mins ago

India’s Banks Achieve Record Low NPAs, Signaling Financial Stability

India’s banking system has recorded one of its strongest recoveries in recent years. On February…

2 hours ago

Which is the Largest Metro Network in India?

Did you ever notice how big cities are always busy with traffic and crowds? To…

2 hours ago

India Jumps Four Places in Network Readiness Index 2025

India has made a notable jump in global digital performance by improving its position in…

2 hours ago