In a move signaling strong growth ambitions, the Board of Directors at Bank of Baroda has given the go-ahead for raising a substantial amount of capital. The decision, made at a board meeting earlier today, paves the way for the bank to potentially raise up to Rs. 8500 crores (approximately $1.1 billion USD) through the issuance of common equity.
The fundraising will be executed through various channels, including Qualified Institutional Placements (QIPs), spread out in suitable phases stretching until March 2028 and potentially beyond, depending on the bank’s needs and market conditions. Of course, any such activity will be subject to the necessary approvals from regulatory bodies.
In addition to the equity fundraising, the board has also granted an extension, potentially stretching to March 31, 2026, and beyond if needed, for raising the remaining Rs 4,000 crores from a previously approved plan. This will be achieved through Additional Tier I (AT I) and/or Tier II Debt Capital Instruments, part of a larger Rs 7,500 crore plan initially greenlit in July of last year.
“This decision reflects a strategic intent to strengthen the bank’s capital reserves and fuel its future development,” a source familiar with the bank’s strategy stated. “The gradual, phased approach will allow us to capitalize on favorable market conditions while adhering to all regulatory guidelines.”
The Bank of Baroda board meeting took place between 12:30 pm and concluded at 03:50 pm today.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
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Published on: February 13, 2025 at 9.00PM GMT.
As stated in Bhagavad Gita : (Bhagavad Gita 6.5)
जन्म मृत्युः जीवनं च यस्य नाहं वेत्ति कश्चन।
नाहं वेत्ति कश्चन केनाचित्
He who thinks that the soul kills, and he who thinks of it as killed, are both ignorant. The soul kills not, nor is it killed.
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