The bank had received approval to raise Rs 500 crore from Basel-III compliant tier-II Bonds by way of private placement.
The bank has raised Rs 450 crore from tier-II bonds at a coupon rate of 8.64 per cent, it said in a statement.
Shares of Vijaya Bank closed at Rs 30.55 on the BSE, up 3.04 per cent from their previous close.