Bank of Baroda has got the board approval to raise up to $7 billion through bonds and issuance of certificates.

The state-owned bank plans to raise up to $3 billion through the issuance of certificates of deposits (CDs) in single or multiple tranches.

A further $3 billion is to be raised through bilateral or other borrowings.

The bank also plans to raise an additional $1 billion in foreign currency funding through the issuance of bonds under the bank’s medium-term note (MTN) programme, it said in a filing with the exchanges.

The bank did not specific timeline for the fundraising programme.

Several banks are looking to raise funds through multiple instruments as they seek to shore up their capital base to comply with Basel 3 norms amid rising credit demand and slower deposit growth. Recently, State Bank of India’s executive committee of the central board approved long-term fund raising of up to $2 billion.

Bank of Baroda’s total deposit stood at Rs 11.49 trillion as on 31 December 2022, up 17% on a year-on-year basis, while advances grew 20% to Rs 9.23 trillion. 

On 12 April, the bank raised its marginal cost of funds-based lending rate (MCLR) on overnight tenure by 5 basis points to 7.95%. The one-year tenure was also raised by 5 bps to 8.60%.