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Bank of Baroda to raise up to Rs 2,000 cr via bonds

On Friday, another state-owned lender Canara Bank informed stock exchanges that it will raise up to Rs 2,500 crore

Press Trust of India  |  Mumbai 

The Bank of Baroda headquarters is pictured in Mumbai
Bank of Baroda headquarters in Mumbai

Public sector lender on Saturday said it proposes to raise up to Rs 2,000 crore on private placement basis to meet requirements. "The bank has initiated the process of raising funds through issuance of 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 filing. The bank's shares closed at Rs 154.15 a piece on Friday, down 0.10 per cent over the previous day. On Friday, another state-owned lender 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 are expected to fully comply with 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

First Published: Sat, October 15 2016. 17:48 IST
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