Latest News | Bank of Baroda Raises Rs 981 Cr Through Bonds

New Delhi, Jul 28 (PTI) State-owned Bank of Baroda on Tuesday said it has raised Rs 981 crore by issuing additional tier-1 bonds under Basel III norms.

The bank had on July 24 issued and allotted the "unsecured rated listed subordinated non-convertible fully paid up Basel III additional tier-1 perpetual bonds" for an issue size of Rs 981 crore, it said in a regulatory filing.

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As many as 18 allottees were issued the bonds, carrying coupon of 8.50 per cent, on private placement basis.

Perpetual bonds carry no maturity date and hence are often treated as equity, not debt.

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To comply with Basel III capital regulations, banks need to improve and strengthen their capital planning processes.

These norms are being implemented to mitigate concerns on potential stress on asset quality and consequential impact on performance and profitability of banks.

The Indian banking system has been implementing Basel III standards in phases since April 1, 2013. The banks were expected to fully implement these norms by March 2020.

Earlier on July 17, the bank had informed the exchanges about raising Rs 764 crore by issuing Basel III compliant additional tier-1 bonds on private placement basis.

Bank of Baroda stock closed at Rs 46.80 apiece on BSE, up 0.21 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)