Credit rating agency, CRISIL has assigned its ‘AAA/Stable’ rating to the Rs 1500 crore Tier-II bond issue (under Basel III) of Bank of Baroda (BoB). The rating agency has also reaffirmed its rating on the bank’s existing debt instruments at ‘AAA/Stable’.
The distinguishing feature of Tier-II capital instruments under Basel III is the existence of the point of non-viability (PONV) trigger, the occurrence of which may result in loss of principal to the investor, and hence, to default on the instrument by the issuer.
BoB is among the top five banks in India, with total assets of Rs.5.5 trillion as on March 31, 2013. The bank had a domestic network of 4289 branches, with around 61 per cent of its branches in the semi-urban and rural areas, as of June 30, 2013.
