Corporation Bank to raise up to Rs 1,000 crore by issuing Basel III compliant bonds

By: |
Published: November 7, 2019 9:26:24 PM

Banks need to improve and strengthen their capital planning processes to comply with Basel-III capital regulations. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Corporation Bank, compliant bonds, industry news, banking news, Basel III compliant bondsThe tenor of the bonds, to be issued on November 8, 2019, is 10 years.

State-run Corporation Bank on Thursday said it will raise up to Rs 1,000 crore by issuing Basel III compliant bonds on a private placement basis. The bank is issuing Basel III compliant tier-2 bonds 2019-20 series of Rs 500 crore with green shoe option up to Rs 500 crore on private placement basis, it said in a regulatory filing.

The tenor of the bonds, to be issued on November 8, 2019, is 10 years. The bank said no issuer call option is available with the bond issue and the interest payment on the bond will be on annual basis and shall not be cumulative.

Banks need to improve and strengthen their capital planning processes to comply with Basel-III capital regulations. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

The Indian banking system has been implementing Basel-III standards in phases since April 1, 2013. The banks were expected to fully implement these norms by March 2019. However, the Reserve Bank of India has shifted this date further by March 2020.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1PMC account holders stage protest at RBI Delhi; demand full money withdrawal
2PMC depositors gather outside RBI Delhi, demand assurance from central bank
3Singapore, UAE to bank on India for money: Soon, UPI will power digital payments abroad