The state-owned lender Bank of Baroda (BoB) had announced last week its plans to raise up to Rs 10,000 crore ($1.35 billion) through infrastructure bonds in an upcoming board meeting set to be conducted on Wednesday, October 11, 2023. The bank is also considering a tier-1 bond of up to Rs 2,000 crore ($270 million). This announcement comes as the bank reported robust growth in its business for the second quarter.
In the September quarter, BoB reported a 17% year-on-year rise in total advances at Rs 10.3 lakh crore ($139 billion) and a 14.6% year-on-year growth in total deposits at Rs 12.5 lakh crore ($169 billion). This growth was driven by strong domestic advances and international book contributions, as well as an increase in domestic CASA deposits and international deposits.
This positive performance has led Motilal Oswal Securities, a domestic brokerage firm, to retain its 'Buy' rating on BoB. The firm cited outstanding growth in business driven by retail loans and positive internal book trends as reasons for its optimistic outlook on the bank.
In addition to its financial developments, BoB has also made changes to its leadership. The bank has appointed Shri Lal Singh as Executive Director for a three-year term starting Tuesday. His appointment is expected to bring fresh perspectives and strategic direction to the bank's operations and growth plans.
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