BoB issues Rs 2,500 crore AT-1 bonds at 7.88%, cheaper than peers

Four PSU banks have raised Rs 7,800 crore AT-1 bonds so far in FY23 as credit demand booms

Bank of Baroda on Tuesday issued additional tier-1 (AT-1) bonds worth Rs 2,474 crore at a cutoff of 7.88 per cent, far lower than the rates at which fellow lenders in the public sector space, such as Canara Bank and Punjab National Bank issued such bonds last month, sources told Business Standard.

With Tuesday’s sale of AT-1 bonds, four public sector banks have raised a total of Rs 7,794 crore through this route so far this financial year, data provided by industry sources showed.

According to the data, Punjab National Bank sold AT-1 bonds worth Rs 2,000 crore on