Dec 01, 2016 08:02 PM IST IST | Source: PTI

Bank of Maharashtra to raise Rs 1,000 cr via bonds

State-owned Bank of Maharashtra today said it proposes to raise Rs 1,000 crore through bonds to fund business expansion.

State-owned Bank of Maharashtra today said it proposes to raise Rs 1,000 crore through bonds to fund business expansion.

The bank is proposing to raise funds by issue of Basel III compliant AT1 bonds of Rs 250 crore with green shoe option of Rs 750 crore aggregating to Rs 1,000 crore on private placement basis, Bank of Maharashtra said in a statement.

Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.

AT-1 bonds, which qualify as core or equity capital, are one of the means of raising capital by public sector banks.

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