Bank of Baroda’s board has approved raising capital up to Rs 8,500 crore through common equity shares to support business growth and meet regulatory norms.

 The state-run bank would use various modes, including qualified institutional placement (QIP), in suitable tranches up to March 2028 and beyond, as required. 

This will be subject to applicable statutory and regulatory approvals, the bank said in its regulatory filing with the stock exchange. 

The bank’s capital adequacy stood at 15.96 per cent, with Common Equity Tier-I (CET-I) at 12.38 per cent at the end of December 2024. BoB had raised capital via QIP of Rs 4,500 crore during financial year 2021. 

The government of India's stake in the bank stood at 63.97% at the end of December 2024.

The bank’s board has also authorised an extension of time up to the end of March 2026 and beyond for raising the remaining capital of Rs 4,000 crore through Additional Tier-I and/or Tier-II debt capital instruments out of the approved Rs 7,500 crore capital-raising plan. This capital-raising plan was approved at a board meeting on 5 July 2024.