Latest News | Central Bank of India to Raise Up to Rs 500 Cr by Issuing Bonds

New Delhi, Dec 11 (PTI) State-owned Central Bank of India on Friday said it will raise up to Rs 500 crore by issuing Basel III compliant bonds.

"The capital raising committee of the board of directors of the bank at its meeting held today i.e., December 11, 2020, considered and approved the proposal for raising of capital funds up to Rs 500 crore," the bank said in a regulatory filing.

Also Read | Amazon Pay India's Loss Widens to Rs 1,868.5 Crore in Financial Year 2019-20.

The bank said that the fund will be raised by issuing non-convertible redeemable unsecured Basel III compliant tier 2 bonds in the nature of promissory notes.

Promissory notes are debt instruments with a promise by the issuer to repay the lender the amount with interest and it allows companies or individuals to get funds other than banks.

Also Read | Australia Halts Production of Indigenous COVID-19 Vaccine After Trials Show It Effects HIV Diagnosis.

Basel-III compliant bonds have both higher capital requirement and loss-absorption features compared with Basel II. The Basel-III regulations are aimed to enhance the quality and quantity of capital held by banks.

Shares of Central Bank of India closed 0.53 per cent down at Rs 14.88 apiece on the BSE on Friday.

(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)