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BOB raises Rs 920 cr by issuing Basel III bonds
PTI
Last Updated IST
Bank of Baroda headquarters is pictured in Mumbai. (Reuters Photo)
Bank of Baroda headquarters is pictured in Mumbai. (Reuters Photo)

State-owned Bank of Baroda on Friday said it has raised Rs 920 crore by issuing Basel III-compliant bonds on private placement basis.

The issue which opened on Thursday and closed the same day saw a total of 11 allottees through the private placement of bonds, the bank said in a BSE filing.

A total of 9,200 bonds, aggregating to Rs 920 crore, were issued.

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The lender has issued and allotted unsecured rated listed subordinated non-convertible fully paid up redeemable Basel III compliant tier II bonds on private placement basis, it added.

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 stresses 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 are expected to fully implement these norms by March 2020.

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(Published 03 January 2020, 16:00 IST)