Bank of Baroda plans to raise Rs 10,000 cr through bonds

MUMBAI: The Bank of Baroda board of directors on Wednesday approved a proposal to raise up to Rs 10,000 crore through long-term bonds for financing infrastructure and affordable housing.

“The board of directors in its meeting held today has approved the proposal for raising Long Term Bonds for financing of infrastructure and affordable housing aggregating to a total size up to Rs 10,000 crores, in single or multiple tranches during 2023-24 and beyond, if found expedient,” the bank said in a filing with the stock exchange.

The RBI had on Tuesday barred the Bank of Baroda from any further onboarding of their customers onto the ‘bob World’ mobile application due to “certain material supervisory concerns observed in the manner of onboarding their customers.

The central bank had stated that any further onboarding of customers of the bank on the ‘bob World’ application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI.

This led to a 3 per cent decline in the stock price of the bank.

Bank of Baroda said while it has already carried out corrective measures to address the concerns of the RBI, “we have initiated further steps to plug any remaining gaps identified and we will work closely with the RBI to address their concerns at the earliest to their satisfaction”. It also said that it did not expect the RBI action to have a material impact on the its overall business and growth plans.