Bank of India to issue Basel III compliant bonds to raise up to Rs 750 cr

Bank of India on Wednesday said it will raise up to Rs 750 crore by issuing Basel III compliant bonds.

The bidding for the Basel III compliant additional tier I bonds will start on March 26 and end on March 30 (settlement date), the bank said in a regulatory filing.

"On March 24, 2021, we have uploaded the information on electronic bidding platform (NSE) for raising of capital by issue of Basel III compliant additional tier I bonds for base issue size of Rs 250 crore plus green-shoe option of Rs 500 crore (aggregating to Rs 750 crore)," Bank of India said in a regulatory filing.

The minimum lot size of the bond issue will be of Rs 1 crore and in multiples of Rs 1 crore thereafter, said the public sector lender.

Under the Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.

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

Stock of Bank of India closed nearly 4 per cent down at Rs 72.20 apiece on the BSE.