Public sector lender Bank of Baroda has revealed its intention to raise up to £24.6 million on private placement basis to meet Basel III requirements. It said in a BSE filing, "The bank has initiated the process of raising funds through issuance of Basel III Complaint AT-I (Additional Tier-I Capital) Bonds- Perpetual Debt Instrument of £12.3 million with Green Show option of £12.3 million (total size not to exceed £24.6 million) on private placement basis."
Another state-owned lender Canara Bank had earlier informed stock exchanges that it will raise up to £30.8 million in one or more tranches by issuing Basel-III compliant bonds. All Indian banks are expected to fully comply with Basel III standards by March 2019 to improve and strengthen their capital planning processes.
