BoB to raise Rs 1,500 cr from bonds in FY10

Bank of Baroda (BoB) is planning to raise about Rs 1,500 crore in the next seven months from bonds to meet capital requirement.

"We plans to raise Rs 1,500 crore from Tier I and II bonds in the remaining part of the fiscal," BoB Chairman and Managing Director M D Mallya told PTI.

This will help in maintaining capital adequacy ratio of over 12.5 per cent, he said, adding, the bank expects credit growth of 25 per cent in the fiscal.

He said the bank has headroom to raise about Rs 12,000 crore from bonds.

Defying weak economic conditions, BoB reported 85 per cent growth in net profit during the first quarter at Rs 685.38 crore on the back of low cost funds.

 

International operations of the bank continued to remain the mainstay and contributed 23.5 per cent to the bank's total business and operating profits. The overseas business accounted for 43 per cent of the bank's net profit during the quarter.

The bank said the overall profitability was supported by 24.4 per cent growth in the total income at Rs 4,735.15 crore.

The net interest income of the bank was Rs 1,204.70 up 14 per cent from Rs 1,204.70 crore, a year ago.