New Delhi: State-owned Oriental Bank of Commerce plans to raise up to Rs 1,000 crore by issuing Basel III compliant bonds on a private placement basis.
"The bank intends to raise tier I capital through private placement of Basel III compliant additional tier I bonds of Rs 10 lakh each aggregating to Rs 500 crore with an option to retain subscription of up to Rs 500 crore," it said in a regulatory filing.
The Gurgaon headquartered bank said the proposed bond issue has been rated A (Hyb) with negative outlook by ICRA and A with negative outlook by CARE.
Banks across the globe have to mandate themselves with the Basel III standards that seeks to protect them against unfavourable economic conditions by improving and strengthening their capital planning processes.
The norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
Being implemented in phases since April 1, 2013, India is expected to fully implement Basel III standards by March 2019.
This will align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019.
Share of the bank closed 5.75 percent up at Rs 143.55 apiece on the BSE.
