Allahabad Bank raises Rs 1,000 cr via bonds

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State-owned Allahabad Bank has raised Rs 1,000 crore by issuing Basel III compliant bonds on private placement basis.

Earlier in August 2016, the bank had received nod from its board of directors to raise the amount by issuing bonds to enhance its tier-II capital.

"The bank has on date successfully raised Basel III compliant tier II bonds aggregating to Rs 1,000 crore through private placement at an annual coupon of 8.15 per cent per annum," the bank said in a regulatory filing.

The bank said tier II bonds are eligible for inclusion in tier II capital of the bank, Allahabad Bank added.

The elements of tier II capital of a bank include undisclosed reserves, revaluation reserves, general provisions and loss reserves, hybrid capital instruments, subordinated debt and investment reserve account.

Stock of Allahabad Bank closed 2.01 per cent higher at Rs 66 apiece on BSE.