The Bank of Baroda said in its most recent exchange statement that the bank board has examined and sanctioned a $1 billion foreign currency fundraising via bond issuance. Bank of Baroda said that the state-owned bank’s board of directors also discussed and authorised obtaining capital through bilateral/other borrowings of up to $3 billion.

We advise that a meeting of our Bank’s Board of Directors is scheduled for April 21, 2023, among other things, to consider and approve the raising of foreign currency funds through the issuance of Bonds and/or Certificates of Deposit and/or other borrowings, as informed by Bank of Baroda in a previous exchange.

Bank of Baroda informed Indian stock exchanges that the Board of Directors has considered and approved raising foreign currency funds through the issuance of Bonds up to $1 billion under the Bank’s MTN programme and Certificates of Deposit up to $3 billion under the CD programme in single or multiple tranches at the appropriate time.

However, the share price of Bank of Baroda has been trading in a narrow range since early morning trades, although the market was well aware of today’s board meeting to evaluate and approve fundraising.

Bank of Baroda’s share price opened at par today and quickly fell to an intraday low of Rs 174.60 on the NSE, representing a 1.75% drop during Friday trading. However, as the planned money drive became known, the PSU stock recovered some of its early morning losses. Shares of the bank closed at Rs 176.20, down 0.87% from the previous close.

Bank of Baroda amended its Marginal Cost of Funds Based Lending Rate (MCLR) effective April 12, 2023, increasing the ‘overnight’ rate from 7.9% to 7.95% and the ‘One Year’ rate from 8.55% to 8.6%. As of March 31, 2023, the public bank’s overall business had crossed the Rs 21 trillion mark, increasing by 16.8% yearly (YoY). Total advances increased 19%YoY and 5.4% sequentially to Rs 9.74 trillion as of March 31, while total deposits increased 15.1% YoY and 4.7% quarter on quarter to Rs 12.04 trillion.