Bank of Baroda (BoB) on Friday said that the fund-raising plan was executed largely to capture the recovery in the cycle.

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The lender has raised Rs 4,500 crore via qualified institutional placement (QIP).

"The capital-raising was largely done to capture the recovery in the cycle and the recovery in the demand for credit that has been seen," said Ian DeSouza, Chief Financial Officer, Bank of Baroda, in an interview with CNBC-TV18.

“Our total capital adequacy, before we started this, was around 9 percent. We are about 70 basis points (bps) higher than that, so it is close to 10 percent now,” he said.

DeSouza expects the corporate demand for credit to be back in the next year.

“For FY22, it (credit growth) will be in the double-digits but that predicates on the fact that the cycle comes back, demand is there, there is good quality corporate credit and there will be continued growth in retail book. There is much stronger growth on retail," he said.

On fund-raising, he mentioned, “If you take into account our internal accruals, we should not raise fund before March of 2022.”

When asked whether the bank will do any non-core asset sale in order to raise capital, he stated, “We are going to consider that in the next 12-24 months' period. We have a life insurance venture, we may consider it there.”

For the full interview, watch the video…

(Edited by : Niral Sharma)

First Published:Mar 5, 2021 3:30 PM IST