The capital raising committee of Bank of Baroda on Wednesday approved the issuance of Basel III compliant tier two bonds for aggregate total issue size not exceeding Rs 2,000 crore in single or multiple tranches.
The development came less than a week after the state-owned lender raised Rs 920 crore by issuing Basel III compliant bonds on private placement basis.
The issue had opened on January 2 and closed on the same day. It saw a total of 11 allottees through a private placement of bonds. A total of 9,200 bonds aggregating to Rs 920 crore were issued.
At 1 pm, shares of Bank of Baroda traded 1.2 per cent down at Rs 94.95 on BSE Ltd.
Last month, the Reserve Bank of India (RBI) found that Bank of Baroda had under-reported bad loans by Rs 5,250 crore in the financial year 2018-19.
The bank had reported Rs 23,795 crore net non-performing assets while the RBI assessed it at Rs 29,045 crore, leaving a gap of Rs 5,250 crore. The divergence in provisioning also increased by Rs 4,090 crore.
Bank of Baroda is undergoing a three-way merger with Dena Bank and Vijaya Bank. The combined entity will have a geographical reach of more than 9,500 branches, more than 13,400 ATMs with 85,000 employees serving 12 crore customers.
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