Home / Industry / Banking /  Bank of Baroda plans to raise up to 2,500 cr

State-owned Bank of Baroda on Friday said it is mulling raising debt capital within its limit of 2,500 crore by issuing bonds. "Meeting of capital raising committee of our bank is scheduled to be held on August 22, 2022 to discuss the raising of Basel III compliant bonds within the board approved limit of 2,500 crore," the bank said in a BSE filing.

BoB has recently hiked lending rates across various tenures by 5 to 20 basis points, saying the revised interest rates would come into effect immediately.

The decision follows the Reserve Bank of India monetary policy committee's move to raise the repo rate by 50 basis points to 5.40% in order to curb inflation.

The hike took the repo rate above pre-pandemic levels of 5.15%. Raising interest typically suppresses demand in the economy and helps to contain inflation.

Last month, BoB reported a 79.3% year-on-year jump in its standalone net profit at 2,168 crore in the April-June quarter as against a net profit of 1,209 crore in Q1FY22.

The Net Interest Income (NII) grew by 12% to 8,838 crore in the quarter under review, boosted by fee income that climbed 15%. The Operating Income for the June quarter came at 10,020 crore.

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