BoB to raise Rs2,500 cr via Basel-III compliant bonds

Mumbai: Public sector lender Bank of Baroda (BoB) on Friday said it plans to raise up to Rs2,500 crore by issuing Basel-III compliant bonds. The Capital Raising Committee has approved a proposal to raise tranche I of Basel-III compliant Tier-II bonds with a base issue size of Rs1,000 crore with a green-shoe option to retain oversubscription of up to Rs1,500 crore, it said in a BSE filing.

Under Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes. The bank’s shares were trading at Rs219.20 apiece on BSE, down 0.36 per cent over the previous close. The stock had touched a 52-week high of Rs224.30 on Thursday.