Bank of Baroda shares in focus today as lender to raise up to Rs 15,000 crore

Shares of Bank of Baroda gained 1 percent in early deals today after the lender said it would raise up to Rs 15,000 crore through tier-II and infrastructure bonds to fund business growth. Bank of Baroda stock gained 0.99 % to Rs 198.60 on BSE. Market cap of the firm rose to Rs 1.02 lakh crore on BSE. It opened higher at Rs 197.15 . Total 0.60 lakh shares of Bank of Baroda changed hands amounting to a turnover of Rs 1.17 crore on BSE.

The stock has gained 5.85% this year and gained 21.10% in the last one year. Bank of Baroda shares have a beta of 0.1, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of Bank of Baroda stands at 47.1, signaling it's trading neither in the overbought nor in the oversold territory. Bank of Baroda shares are trading higher than the 5 day, 10 day, 20 day, 200 day but lower than 30 day, 50 day and100 day moving averages.

"The capital raising committee decided to raise Rs 5,000 crore through tier-II bonds and Rs 10,000 crore through infrastructure bonds,” the bank said.

“The capital raising committee of the bank in its meeting held on Saturday has approved the issuance of Rs 2,000 crore tier II/sub-debt bond with the greenshoe option to raise another Rs 3,000 crore totalling Rs 5,000 crore (10 years with a call option at the end of five years,” said the lender.

“The bank has further decided to issue infrastructure bonds amounting to Rs 2,000 crore with a greenshoe option to raise an additional Rs 8,000 crore totalling the issue size of Rs 10,000 crore (tenure up to seven years),” it added.

The bank reported a 28.3 percent rise in net profit at Rs 4,252.89 crore in Q2 led by improved asset quality and healthy core income growth. Net interest income (NII) climbed 6.4 percent year-on-year to Rs 10,831 crore.

Total income from operations climbed 39 per cent on year to Rs 32,033 crore.

Operating profit in Q2 rose 33 per cent on year to Rs 8,020 crore. The cost-to-income ratio reduced to 46.54 per cent from 49.74 per cent a year ago.

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