Bank of Baroda plans to raise up to Rs 10,000 crore via infra bonds

Bank of Baroda plans to raise up to Rs 10,000 crore via infra bonds

Bank of Baroda is considering raising up to ₹10,000 crore through the issuance of infrastructure bonds, as the state-owned lender aims to secure long-term capital amid strong demand for credit. The bank has scheduled a board meeting on October 11 to discuss the approval of raising funds through long-term bonds for financing infrastructure and affordable housing. Infrastructure bonds are long-term debt instruments that do not require banks to maintain cash reserve ratio (CRR) and statutory liquidity ratio (SLR). Other banks such as State Bank of India, Canara Bank, and ICICI Bank have already opted for the infrastructure bond route to raise long-term funds. As of September 22, bank credit growth was at 20% year-on-year, while deposit growth was at 13.2% over the same period, according to RBI data. In a separate development, Power Grid Corporation of India plans to raise up to ₹2,250 crore through a sale of unsecured, non-convertible debentures with a maturity of 10 years.

TIS Staff

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