Bank of India to raise Rs 1000 cr to comply Basel III norms

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New Delhi:  State-owned Bank of India will raise up to Rs 1,000 crore on a private placement basis by issuing additional tier-I bonds that are compliant with globally accepted Basel III standards.

“The bank is in process of raising Basel-III compliant additional tier-1, perpetual bonds -Series 4, for an amount of Rs 500 crore with a green shoe option of Rs 500 crore, aggregating Rs 1,000 crore by private placement,” Bank of India said in a regulatory filing.

Bonds have been rated BWR AA with stable outlook by Brickwork Ratings India. Crisil has rated CRISIL A+/Negative.

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

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

Indian banking 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 India closer to the internationally agreed date of January 1, 2019.

Bank of India shares closed 0.31 per cent up at Rs 128.90 on BSE.

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