Bank of Baroda has raised over Rs 971 crore by issuing Basel III compliant bonds. The bank issued Basel III compliant tier II bonds of face value of Rs 10 lakh each amounting to Rs 971 crore. The unsecured, redeemable bonds carry a coupon rate of 8.42 per cent. The issue opened and closed the same day i.e December 6, 2018. As many as 17 allottees were given the bonds under the issue.
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. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
Bank of Baroda is engaged in providing various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services.
