Bank of Maharashtra raises Rs 100 cr by issuing Basel III compliant bonds

NEW DELHI: State-run on Tuesday said it has raised Rs 100 crore by issuing Basel III compliant bonds on private placement basis.

"The bank had successfully raised capital of Rs 100 crore through private placement of Basel III compliant tier II bonds," Bank of Maharashtra said in a regulatory filing.

The unsecured redeemable taxable subordinate tier II bonds bear interest rate of 8 per cent.

A total of 1,000 bonds, having face value of Rs 10 lakh each, have been issued to the bondholders on March 23, 2021, said the lender.

The bonds are set to mature on March 23, 2031.

Pune-based lender said it will list the bonds on wholesale debt market segment of BSE.

Under the Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.

These norms are implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Bank of Maharashtra stock closed at Rs 20.90 apiece on BSE, up 10 per cent from previous close.