All Rights Reserved Finance News 2020.
Bank of Baroda raises Rs 981 cr through bonds
NEW DELHI: State-owned Bank of Baroda upon Tuesday said it has brought up Rs 981 crore by simply issuing additional tier-1 bonds under Basel III rules.
The bank had upon July 24 issued plus allotted the “unsecured scored listed subordinated non-convertible totally paid up Basel 3 additional tier-1 perpetual bonds” for an issue size of Rs 981 crore, that said in a regulatory declaring.
As many as 18 allottees were issued the particular bonds, carrying coupon of 8.50 per cent, upon private placement basis.
Perpetual bonds carry no maturation date and hence are often addressed as equity, not credit card debt.
To comply with Basel 3 capital regulations, banks must improve and strengthen his or her capital planning processes.
These norms are being implemented to help mitigate concerns on likely stress on asset excellent and consequential impact on efficiency and profitability of banking institutions.
The Indian banking process has been implementing Basel 3 standards in phases given that April 1, 2013. Typically the banks were expected to totally implement these norms by simply March 2020.
Earlier upon July 17, the bank acquired informed the exchanges regarding raising Rs 764 crore by issuing Basel 3 compliant additional tier-1 bonds on private placement schedule.
Bank of Baroda commodity closed at Rs 46.80 apiece on BSE, up 0.21 percent.