Bank of Baroda to Raise Up to ₹6,000 Crore Through AT1, Tier II Bonds

Bank of Baroda has approved a proposal to raise up to ₹6,000 crore through Additional Tier 1 (AT1) and Tier II bonds, according to an exchange filing issued after its board meeting on May 8. The filing was signed by Company Secretary S Balakumar. 

Fundraising Plan Approved by Board 

The lender said the capital may be raised in multiple tranches. The fundraising window will remain open until March 31, 2027, and may continue beyond that period if required. The proposal is subject to statutory and regulatory approvals.  

The disclosure was submitted under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.   

Use Of AT1 And Tier II Bonds 

Banks generally use AT1 and Tier II bonds to strengthen their capital position and meet regulatory capital requirements prescribed by the Reserve Bank of India. 

AT1 bonds are perpetual instruments with no fixed maturity date, while Tier II bonds carry a fixed tenure. Both are treated as part of a bank’s overall capital structure and are used to support lending operations and balance sheet requirements. 

Public sector banks have continued to access bond markets in recent years to maintain capital buffers amid loan growth and changing funding needs. 

Details Shared in Exchange Filing 

Earlier, the bank had informed exchanges on May 4 about the scheduled board meeting where the proposal for capital raising was to be considered. The approval was formally cleared during the May 8 meeting.  

Read More: Kotak Mahindra Bank Gets RBI Approval to Acquire Up to 9.99% Stake in Multiple Banks Including Federal Bank, J&K Bank! 

Bank of Baroda Share Price Performance  

As of May 11, 2026, 3:08 pm, Bank of Baroda share price was trading at ₹266.15, up 0.85% from the previous closing price. 

Conclusion 

The proposed bond issuance adds to Bank of Baroda’s capital raising plans for the coming financial periods. The bank said the fundraising would be carried out in phases depending on requirements and regulatory approvals. 

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