By issuing Basel III compliant bonds, the Bank of India raises Rs 602 crore.

The bank had announced earlier on Wednesday that it intends to raise up to Rs 750 crore via this offering, with a base issue size of Rs 250 crore and a greenshoe option of Rs 500 crore.

The bonds carry a coupon rate of 9.30 per cent per annum, said the lender.

The Public Sector Bank of India reported on Friday that it had raised Rs 602 crore through the issuance of bonds.

According to a press release, the Bank of India (BOI) raised Rs 602 crore through a private placement of Basel III compliant additional tier 1 (AT-1) bonds on March 26, 2021.

The bank had announced earlier on Wednesday that it intends to raise up to Rs 750 crore via this offering, with a base issue size of Rs 250 crore and a greenshoe option of Rs 500 crore.

According to the lender, the bonds have a coupon rate of 9.30 percent per year.

On March 30, the settlement and allotment of bonds will take place.

Banks all over the world must develop and enhance their capital planning processes in order to comply with Basel-III capital regulations.

These rules are in place to alleviate concerns about possible asset quality problems and their effect on bank efficiency and profitability.

On the BSE, BOI stock closed 0.58 percent higher at Rs 69.70 per share.

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