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Central Bank raises Rs 1,500 cr via Tier-II bonds to fund biz growth

The issue just managed to scrape through as the bank received bids for Rs 1,516 crore from investors and it accepted bids for Rs 1,500 crore

Central Bank of India

Press Trust of India

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State-run Central Bank of India Thursday said it has raised Rs 1,500 crore by issuing Basel-III compliant Tier-II bonds on private placement basis.

The base size for the bond sale was Rs 500 crore, while the greenshoe option stood at Rs 1,000 crore, the bank said in a statement.

The issue just managed to scrape through as the bank received bids for Rs 1,516 crore from investors and it accepted bids for Rs 1,500 crore.

The capital will help the bank maintain a healthy capital adequacy ratio and fund its business growth.

Central Bank of India reported a 78 per cent rise in net profit at Rs 418 crore for the June quarter on the back of a decline in bad loans and increase in interest income.

Total income increased to Rs 8,184 crore from Rs 6,357 crore.

The lender's asset quality improved with gross NPAs declining to 4.95 per cent from 14.9 per cent as of June 2022 and net NPAs easing to 1.75 per cent from 3.93 per cent.

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First Published: Aug 31 2023 | 11:10 PM IST

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