BOB raises Rs 1,747 cr from Basel III compliant bonds

BOB raises Rs 1,747 cr from Basel III compliant bonds

Bank of Baroda on Wednesday said it has raised Rs 1,747 crore by issuing Basel III compliant bonds on a private placement basis.

The bank has issued and allotted Basel III compliant additional tier I bonds, Bank of Baroda said in a regulatory filing.

A total of 17,470 '8.99 per cent unsecured rated listed subordinated fully paid up additional tier I Basel III compliant non-convertible perpetual taxable bonds, Series XI' were allotted to 18 allottees on December 18, 2019, the state-run bank said.

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 the performance and profitability of banks.

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

Shares of Bank of Baroda traded down 3.42 per cent at Rs 98.75 on the BSE.