You are here: Home » PTI Stories » National » News
Business Standard

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

Press Trust of India  |  New Delhi 

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

The 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, of 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 01 2016. 19:32 IST