Bank of India raises Rs 1,000 crore via Basel-III bonds

State-owned Bank of India on Thursday said it has raised Rs 1,000 crore through bonds that comply with Basel-III norms for capital adequacy.

"The bank has raised Rs 1,000 crore by issue of Basel-III compliant additional Tier-I bonds," it said in a regulatory filing, adding that they have been rated AA (-) by Brickwork and A+ by Crisil and bear a coupon rate of 11.50%.

The Basel-III Capital Regulations require banks to improve and strengthen their capital planning processes as there are concerns about potential stresses on asset quality and consequential impact on the performance/profitability of banks. The norms are aimed at assessing the level of capital needed to support business strategies over the medium-term.

In India, Basel-III Capital Regulations are being implemented since April 1, 2013 in a phased manner. The transitional period for full implementation of Basel-III Capital Regulations in India is extended up to March 31, 2019.

Bank of India shares closed 0.78% up at Rs 96.30 on BSE.