Bank of Baroda Board Approves To Raise Rs 8,500 Crore Through Qualified Institutional Placement
Bank of Baroda's board also extended the time to raise the remaining capital of Rs 4,000 crore to March 31, 2026.
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The board of Bank of Baroda has approved raising funds up to Rs 8,500 crore through multiple means, including qualified institutional placement.
The approved funds will be raised in suitable tranches up to March 2028, subject to statutory approvals, according to an exchange filing on Thursday.
The board has also extended the time to raise the remaining capital of Rs 4,000 crore to March 31, 2026. The fund is part of the overall capital of Rs 7,500 crore approved by the board in the previous year’s capital plan.
The Rs 4,000 crore will be raised through "additional tier I (AT I) and/or tier II debt capital instruments," the filings said.
Bank of Baroda Q3 Performance
Bank of Baroda reported a 5.6% rise in net profit of Rs 4,837 crore in the December quarter. This increase was seen due to the lower interest income. This compares to an Rs 4,579 crore profit for the same period last year.
The lender's total income grew to Rs 34,676 crore from Rs 31,416 crore during the same period a year earlier. Interest income saw a slight increase, rising to Rs 30,908 crore in the quarter under review, compared to Rs 28,605 crore in the year-ago period.
Shares of Bank of Baroda closed 0.82% lower at Rs 210.80 apiece on the NSE, compared to a 0.06% fall in the benchmark Nifty 50. The stock has fallen by 18.80% in the last 12 months.
Out of 36 analysts tracking the company, 28 maintain a 'buy' rating on the stock, seven recommend 'hold,' and one suggests 'sell,' according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 30.2%.
