Bank of Baroda on Friday said that its board approved raising additional capital through debt instruments. The public sector lender’s Board of Directors gave approval for raising additional funds worth not more than Rs 5,000 crore through additional tier I or tier II debt capital instruments.

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The lender has also given an option of interchangeability of these instruments in India or outside of the country, in suitable tranches, not later than the end of the current financial year, which means by March 31, 2024.

The interchangeability option can also be exercised after the aforementioned date if found expedient.

The state-owned lender informed the bourses, on June 2, that the said additional capital will be raised when the market is conducive.

For the quarter ending on March 31, 2023, Bank of Baroda posted a 168 percent rise in net profit year-on-year to Rs 4,775 crore, which was higher than CNBC-TV18's poll of Rs 4,029.9 crore, and from Rs 1,779 crore in the previous quarter of last year.

In terms of total business, Bank of Baroda’s number registered a healthy double-digit growth of 16.6 percent year-on-year to Rs 21.73 lakh crore.

Shares of Bank of Baroda are trading 0.8 percent higher at Rs 186.25.