State-owned Allahabad Bank today said it has raised up to Rs 100 crore Basel III compliant additional tier-I capital through private placement of bonds.
The bank's board gave its approval to raise up to Rs 2,000 crore in tranches during 2017-18 that will go into its additional tier-I capital.
"We have to inform you further that the bank has on date successfully raised additional tier-I capital of bank through a private placement of additional tier-I perpetual bonds aggregating to Rs 100 crore," it said in a regulatory filing.
The bondholders will get a coupon rate of 11.85 percent per annum.
In view of the implementation of global standard Basel III Capital Regulations, banks need to improve and strengthen 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 a little behind from the internationally agreed date of January 1, 2019.
The stock of Allahabad Bank today closed 2.17 per cent down at Rs 67.55 on BSE.
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