Bank of Baroda raises Rs 1,650 crore via Basel-III compliant bonds

Bank of Baroda on Thursday said it has raised Rs 1,650 crore by issuing Basel-III compliant bonds.

The bank issued 16,500 '8.70 per cent unsecured subordinated fully paid-up additional tier 1 Basel-III non-convertible perpetual taxable bonds' with an issue size of Rs 1,650 crore, it said in a regulatory filing.

The issue, which opened on Tuesday and closed the same day, saw a total of 21 allottees through private placement of bonds.

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

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 2020.

Shares of Bank of Baroda on Thursday were trading up 4.16 per cent at Rs 106.45 on the BSE.