Bank of Baroda shares in focus ahead of board meeting on fund raising

Shares of Bank of Baroda (BoB) will be in focus on Tuesday morning as the PSU bank appointed Shri Lal Singh as Executive Director for a period of three years. The stock would also be in news amid a media report suggesting the bank could announce raising up to Rs 10,000 crore through the issuance of infrastructure bonds, as it eyes long-term capital amid strong credit demand.

The bank had last week suggested that its board would meet on October 11 to approve the raising of funds through issuance of long term bonds for financing of infrastructure and affordable housing. ET quoting a source suggested that BoB has been making market inquiries about an infrastructure bond worth up to Rs 10,000 crore as well as a tier-1 bond for up to Rs 2,000 crore.

Motilal Oswal Securities noted that BoB has reported robust business growth, with both advances and deposits growing at a rapid pace. It noted that retail loans for the state-run bank continued to drive the overall loan growth, while internal book too saw strong trends. The domestic brokerage has maintained 'Buy' on the stock.

For the September quarter, BOB reported 17 per cent YoY (4 per cent QoQ) growth total advances at Rs 10.3 lakh crore, with domestic advances up 16.6 per cent YoY (3 per cent QoQ).

International book, the bank said, rose 21 per cent YoY (6.4 per cent QoQ). Domestic retail loans grew 22.5 per cent YoY (5.4 per cent QoQ), as per the Q2 provisional business update.

Total deposits grew 14.6 per cent YoY (4.2 per cent QoQ) to Rs 12.5 lakh crore, with domestic deposits up 12 per cent YoY (2.3 per cent QoQ). International deposits jumped 32 per cent YoY (15.8 per cent QoQ). Domestic CASA deposits jumped 4.4 per cent YoY (1.1 per cent QoQ).