OBC plans to raise Rs 1,000 cr via bonds

Public sector lender Oriental Bank of Commerce (OBC) is looking to raise Rs 1,000 crore by issuing bonds that would be compliant with global capital adequacy norms.
"The bank intends to raise tier 1 capital through private placement of Basel III compliant additional tier 1 bonds of Rs 10 lakh each at par aggregating to Rs 250 crore with an option to retain over-subscription of up to Rs 750 crore," it said in a regulatory filing.
The proposed issue has been rated as 'A+ with stable outlook' by India Ratings and 'A+ (Hyb) with negative outlook' by ICRA, it said.

Being implemented in phases since April 1, 2013, Indian banks are expected to fully comply with Basel III standards by March 2019 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.
Shares of the bank closed 1.25 per cent higher at Rs 125.60 on BSE.