Public sector lender Bank of Baroda on Saturday approved raising Rs 1,000 crore through long-term bonds for financing of infrastructure and affordable housing. The lender in June approved raising Rs 5,000 crore in FY23 through debt for affordable housing.
“Bank of Baroda in its meeting held today i.e. 16.07.2022 has approved raising of Rs.1000 crores towards Long Term Bonds for financing of infrastructure and affordable housing,” the bank said in an exchange filing.
The bank’s capital adequacy ratio (CAR) stood at 15.84% as on March 31. In FY22, the bank issued additional tier-I capital bonds of Rs 2,749 crore. The infrastructure and affordable housing bonds however will not form part of the capital of the bank. In Q4FY22, the bank’s home loans improved 11.3% to Rs 81,000 crore.
As per Reserve Bank of India (RBI) guidelines, banks can issue long-term bonds with a minimum maturity of seven years for lending to long-term projects in infrastructure and affordable housing.
