New Delhi, Nov 7 (PTI) 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. PTI KPM RVK