Bank of Baroda nnounced that it had raised Rs 1,997 crore through Basel III-compliant bonds. The bank had issued Rs 2,000 crore of additional tier-I bonds on November 24. “The bank has got a total bid of Rs 5,308 crore, out of which the issuance was settled for Rs 1,997 crore at 7.95 per cent per annum,” BoB said in a regulatory filing.
The bank also said that it had issued 1,997 bonds of Rs 1 crore each under this issue of 21 allottees. To comply with Basel-III Capital Regulations, banks require to improve and increase their capital planning methods. These bonds are being completed to relieve concerns on asset quality and significant impact on the performance and profitability of banks.