| Fund Raise | ₹6,000 CrApproved limit |
|---|---|
| Market Cap | ₹1,28,668 CrLarge Cap |
| Revenue TTM | ₹1,36,546 CrOperating Income |
| RSI | 50.9Neutral Zone |
| Execution period | up to 31.03.2027 |
| Deal value | ₹6,000 Cr |
| Share of market cap | 4.7% |
Key highlights
- Total fundraising approved for up to ₹6,000 crore via debt instruments
- Issuance includes Additional Tier 1 (AT1) and/or Tier II bonds
- Fundraise execution scheduled in tranches up to March 31, 2027
- Follows an initial board approval granted on May 8, 2026
- Bank currently maintains a market capitalization of ₹1,28,668.66 crore
What Is the Fund Raise?
The Capital Raising Committee of Bank of Baroda has greenlit a proposal to raise additional capital amounting to ₹6,000 crore. This fundraise will be executed through the issuance of Additional Tier 1 (AT1) and Tier II bonds. The bank plans to deploy these instruments in various tranches based on market conditions and capital requirements.
The timeline for this capital exercise extends through March 31, 2027, and may continue beyond that date if deemed necessary by the management. This move formalizes the preliminary approval previously granted by the bank’s Board of Directors during their meeting on May 8, 2026.
Strategic Rationale
- Strengthening the Capital Adequacy Ratio to comply with Basel III regulatory norms
- Supporting credit growth and expanding the bank's loan book across retail and corporate segments
- Diversifying the capital base through a mix of Tier I and Tier II debt instruments
- Enhancing the bank's resilience against potential credit risks and economic fluctuations
Business Overview
Headquartered in Vadodara, Bank of Baroda operates as a premier public sector banking entity in India with a significant international presence. The bank offers a comprehensive suite of financial products, ranging from personal and corporate banking to specialized MSME and agricultural loans. With a TTM revenue of ₹1,36,546.33 crore and a net profit of ₹18,160.55 crore, the institution maintains a robust foothold in the Indian financial landscape.
The bank’s network spans thousands of domestic branches and overseas offices, catering to a diverse global customer base across multiple continents.
Industry Context
- Rising credit demand in the Indian banking sector driven by infrastructure and industrial recovery
- Public sector banks actively tapping debt markets to bolster their balance sheets for future lending
- Transitioning interest rate environments influencing the timing and pricing of bond tranches
- Regulatory emphasis on maintaining healthy buffers above minimum capital requirements to ensure stability
| Share price | ₹248.81 |
|---|---|
| Market capitalisation | ₹1.29L Cr |
| Revenue (annual) | ₹1.34L Cr |
| Net profit (annual) | ₹19,846.43 Cr |
| Revenue (latest quarter) | ₹35,114.52 Cr+1.74% vs previous quarter |
| Net profit (latest quarter) | ₹1,783.29 Cr-69.26% vs previous quarter |
| P/E (TTM) | 7.09×Sector 23.42× |
| Promoter holding | 63.97%0.00% QoQ |
| FII holding | 10.14%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Bank of Baroda announcing the approval of a ₹6,000 crore capital raise via AT1 and Tier II bonds. Market figures from a third-party data provider.
