Bank of India raises Rs 1,000 cr to strengthen tier-I capital

State-owned Bank of India has raised Rs 1,000 crore by issuing Basel III-compliant additional tier-I bonds.
"The bank has raised Rs 1,000 crore by issue of Basel III compliant additional tier-I bonds on March 15, 2017," it said in a regulatory filing.
Bondholders will get a yield of 9.95 per cent per annum.
The bonds are rated AA(-) by Brickwork and A+ by Crisil.
In view of implementation of global standard Basel III Capital Regulations, banks need to improve and strengthen their capital planning processes.
The norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Being implemented in phases since April 1, 2013, India is expected to fully implement Basel III standards by March 2019.
This will align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019.
Bank of India shares closed 1.69 per cent up at Rs 126.30 on BSE.