Bank of Baroda to Raise ₹10,000 Crore for Infrastructure Projects

Bank of Baroda plans to raise ₹10,000 crore for infrastructure and affordable housing. Discover how this will impact the bank’s performance and stock value.

bank of baroda shares in focus as lender to raise rs 10000 crore via long term bonds

Bank of Baroda (BoB), a state-owned bank, is making headlines as its board has decided to raise ₹10,000 crore to support infrastructure and affordable housing projects. This is exciting news for the bank and could improve many lives!

During a meeting on December 18, 2024, the board approved the plan to gather funds through long-term bonds. They may raise this money in one go or in smaller parts during the financial year 2024-25, depending on what the market looks like and whether it’s a good time to do so.

In the second quarter of the financial year 2024 (Q2 FY24), Bank of Baroda reported a net profit of ₹5,238 crore, which is a 23.2% increase from ₹4,253 crore in the same time last year. The bank’s income from loans also grew by 7.3% to ₹11,622 crore in Q2 FY25.

The bank has been performing really well, with a return on assets (ROA) of 1.30% for Q2 FY25, and return on equity (ROE) reaching 19.22%. Its overall income grew by 12% from last year, helped by a strong 24.2% increase in income from services beyond just loans.

Furthermore, Bank of Baroda’s bad loans have decreased! The gross non-performing asset (NPA) ratio improved to 2.50% in Q2 FY25, down from 3.32% a year earlier. The net NPA ratio also improved, standing at 0.60%.

On Wednesday, Bank of Baroda’s shares closed at ₹250.60, dropping by 2.1%. In 2024, the stock has gained 7%, and over the past two years, it has increased by 38%. The bank’s market cap is now ₹43,011 crore.

(Disclaimer: The views and opinions stated are those of the experts and do not reflect the views of NiftyStat.)

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