Oct 15, 2016, 05.49 PM | Source: PTI
Public sector lender Bank of Baroda today said it proposes to raise up to Rs 2,000 crore on private placement basis to meet Basel III requirements.
"The bank has initiated the process of raising funds through issuance of Basel III Compliant AT-I (Additional Tier-I Capital) Bonds - Perpetual Debt Instrument of Rs 1,000 crore with Green Shoe option of Rs 1,000 crore (total size not to exceed Rs 2,000 crore) on private placement basis," it said in a BSE filing.
The bank's shares closed at Rs 154.15 a piece on Friday, down 0.10 percent over the previous day.
Yesterday, another state-owned lender Canara Bank informed stock exchanges that it will raise up to Rs 2,500 crore in one or more tranches by issuing Basel-III compliant bonds.
Indian banks are expected to fully comply with Basel III standards by March 2019 to improve and strengthen their capital planning processes.
The norms are being implemented to soothe concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
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