New Delhi, Oct 10: Bank of Baroda plans to raise Rs 1,500 crore through certificate of deposits apart from the long-term bonds and fixed deposit schemes to sustain its growth momentum. BoB, whose deposits grew by 7.38 per cent to Rs 66,366 crore last fiscal, has been able to keep its cost of borrowing lower through judicious mix of its deposits.
Official sources said the bank's savings deposits amounted to 25 per cent of the total deposits, while demand deposits amounted to 9.0 per cent and term deposits accounted for the remaining 66 per cent.
The bank's foreign deposits amounted to 10.5 per cent of its liabilities, they said.
The bank was able to improve its interest spread, which is the difference in cost of lending and borrowing, to 2.64 per cent in 2002-03 from 2.56 per cent in 2001-02. This was possible after the bank reduced its cost of deposits. Bureau Report