Bank of Baroda raises Rs 971 cr by issuing Basel III compliant bonds

    Bank of Baroda said it has raised over Rs 971 crore by issuing Basel III compliant bonds.

    The bank issued Basel III compliant tier II bonds of face value of Rs 10 lakh each amounting to Rs 971.50 crore.

    The unsecured, redeemable bonds carry a coupon rate of 8.42 percent, Bank of Baroda said in a regulatory filing.

    The issue opened on December 6 and closed the same day, it added. As many as 17 allottees were given the bonds under the issue.

    Basel III is an international regulatory framework with a set of reforms to improve the regulation, supervision and risk management within the banking sector.

    To comply with global Basel-III capital regulations, banks need to improve and strengthen their capital planning process.

    These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

    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 2019.

    Stock of Bank of Baroda closed 1.14 percent up at Rs 106.30 on BSE.