Bank of Maharashtra to raise Rs 1,000 cr via tier-II bonds

Public sector Bank of Maharashtra today said it will raise Rs 1,000 crore by issuing Basel-III compliant bonds on a private placement basis.

"Bank of Maharashtra has informed the BSE that the bank is proposing to raise Basel III compliant tier-II bonds amounting to Rs 1,000 crore by way of private or public placement," it said in a regulatory filing.

According to a Fitch Ratings report, Indian banks need $140 billion capital to ensure full compliance with the Basel-III norms by 2018-19. The Basel-III norms are aimed at bolstering banks resilience. Basel-III capital regulations are being implemented in India with effect from April 1, 2013 in a phased manner.
 
Shares of the bank were trading at Rs 31.15 a piece on the BSE, down 0.48 per cent, from their previous close.