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Andhra Bank to raise Rs 1,000 cr via Basel-compliant bonds

Press Trust of India  |  New Delhi 

Public sector will issue bonds on a private placement basis to raise up to Rs 1,000 crore, it said today.

"We wish to inform that the is issuing 7.98 per cent unsecured, fully paid up non-convertible redeemable Basel III compliant tier-2 bonds in the nature of debentures of Rs 10 lakh for aggregating to Rs 1,000 crore," it said in a regulatory filing.

The issue will open for subscription on October 24 and will close on the same day, it said.

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

Basel III norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Indian system has been implementing Basel III standards in phases since April 1, 2013. The banks are expected to fully implement these norms by March 2019.

This will align full implementation of Basel III in closer to the internationally agreed date of January 1, 2019.

shares closed 0.63 per cent up at Rs 55.85 on BSE.

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

First Published: Thu, October 12 2017. 21:13 IST