On October 11, the Bank of Baroda’s board approved a plan to raise up to Rs 10,000 crore through long-term bonds. These funds will be used to support infrastructure development and affordable housing.
- The bank’s statement mentioned that this fundraising could be done in single or multiple tranches during the fiscal year 2023-24 and beyond, depending on the need.
RBI Concerns and HSBC Downgrade
- On October 10, the Reserve Bank of India (RBI) temporarily prevented the bank from onboarding new customers through its digital banking app, BoB World, due to concerns regarding the onboarding process.
- In response to this, HSBC downgraded Bank of Baroda’s stock from “buy” to “hold” with a target price of Rs 220.
Strong Business Growth
- Bank of Baroda reported a 17 percent year-on-year (YoY) growth in total advances, reaching Rs 10.3 lakh crore, with domestic advances up by 16.6 percent YoY.
- The international book also saw a 21 percent YoY increase (6.4 percent quarter-on-quarter).
Retail Loans Driving Growth
- Retail loans were a key driver of the bank’s overall loan growth. Domestic retail loans grew by 22.5 percent YoY and 5.4 percent quarter-on-quarter, as per the Q2 provisional business update.
Robust Deposit Growth
- Total deposits increased by 14.6 percent YoY, reaching Rs 12.5 lakh crore, with domestic deposits up by 12 percent YoY.
- International deposits showed significant growth, jumping 32 percent YoY.
Domestic Current Account Savings Account (CASA) deposits grew by 4.4 percent YoY.