Central Bank of India set to raise Rs 2000 crore via tier-II bonds

Public sector lender Central Bank of India plans to raise Rs 2,000 crore capital through tier-II bonds to meet the regulatory norms for capital adequacy.ICRA assigned ‘A+’ rating to the proposed bond offering. 

These rated instruments (tier-II bonds under Basel III) is a hybrid subordinated instrument with equity-like loss-absorption features. 

They are expected to absorb losses once the “point of non-viability” (PONV) trigger is invoked.

Central Bank will be one of the two public sector banks that will continue to work as an independent bank to strengthen national presence. 

The other bank is Mumbai-based Bank of India. Central Bank is at present under the