State-owned Indian Overseas Bank (IOB) Monday said it has raised Rs 300 crore by issuing Basel III compliant bonds.
The bank's board had earlier approved a proposal to raise the amount by issuing Basel III compliant Tier II bonds in one or more tranches on private placement basis.
"The bank has now successfully raised Rs 300 crore by issue of Basel III compliant Tier II bonds with coupon rate of 11.70 per cent per annum, tenor of 10 years and call option at the end of 5 years or on any coupon payment date thereafter," IOB said in a regulatory filing.
Basel III is an international regulatory framework with a set of reforms to improve the regulation, supervision and risk management within the banking sector.
To comply with global Basel III capital regulations, banks need to improve and strengthen their capital planning process.
IOB scrip closed at Rs 14 on BSE, down 28 per cent.
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