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OBC raises Rs 1,000 cr via Basel III-compliant bond allocation

State-owned Oriental Bank of Commerce (OBC) today said it has raised Rs 1,000 crore, which will be added as Basel III-compliant capital.

By: | New Delhi | Published: September 19, 2016 5:55 PM
Being implemented in phases since April 1, 2013, Indian banks are expected to fully comply with Basel III standards by March 2019 to improve and strengthen their capital planning processes. (PTI) Being implemented in phases since April 1, 2013, Indian banks are expected to fully comply with Basel III standards by March 2019 to improve and strengthen their capital planning processes. (PTI)

State-owned Oriental Bank of Commerce (OBC) today said it has raised Rs 1,000 crore, which will be added as Basel III-compliant capital.

The issue of Basel III-compliant additional tier 1 bonds (private placement) was opened on September 16, 2016 (for one day).

“The issue was fully subscribed to the extent of Rs 1,000 crore and bonds were allotted on September 16, 2016,” the bank said in a regulatory filing.

The issue has been rated as A+ with stable outlook by India Ratings and A+ (Hybrid) with negative outlook by Icra, it said.

Being implemented in phases since April 1, 2013, Indian banks are expected to fully comply with Basel III standards by March 2019 to improve and strengthen their capital planning processes.

The norms are being implemented to soothe concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Shares of the bank closed 1.16 per cent higher at Rs 126.80 on BSE.

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