State owned Bank of Baroda said it has raised Rs 1,000 crore by issuing Basel III compliant additional tier I bonds. The bonds will bear coupon rate of 9.14 %. The bank issued 10,000 bonds of face value of Rs 10 lakh each. 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. Meanwhile, shares of the company were trading at Rs 160.70 apiece, down 0.34 % from the previous close at 10:13 hours on BSE.
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