The directors of Bank of Baroda, in a board meeting on Friday, approved raising close to Rs 7,500 crore by issuing debt securities, according to an exchange filing on the BSE.
"Directors of Bank of Baroda at its meeting held today i.e. 05.07.2024 interalia considered and approved raising of additional capital up to Rs.7,500 crore by way of Additional Tier 1 (AT 1) or Tier II Debt Capital Instruments with an interchangeability option in India/overseas, in suitable tranches upto 31.03.2025 and beyond if found expedient," the filing said.
The board said that the capital will be raised when the market is conducive.
On June 28 this year, the company had also received a demand notice from the Income Tax Department for Rs 1,067.82 crore under Section 156 of the Income Tax Act, 1961, with regards to the assessment year 2017-18, according to the bank's regulatory filing on Thursday.
The bank said it is currently filing an appeal before the concerned authorities regarding the notice.
"Looking to the precedence/orders of appellate Authorities, the Bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter. Accordingly, the Bank expects the entire demand to subside," the bank said in the filing.
However, the bank said that this would not impact their financial operations or other activities.
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