Mumbai, September 30, 2021: Bank of India has raised 10 year (with 5 Years Call Option) Rs. 1,800 crores Basel-III compliant Tier 2 bonds (Base Issue Size: Rs 1,000 crores) on September 29, 2021 on private placement basis, through the NSE EBP platform at a coupon of 7.14%. The Issue was over-subscribed by two times.
Bank has also successfully concluded the QIP issue of Rs 2,550 crores during August 2021, and with this issuance of QIP, the Government of India stake in the Bank has reduced to 81.41%, from 90.34% earlier. Earlier, the Bank had raised Rs 1,352 crores of Basel-III compliant Additional Tier-1 Bonds on private placement basis.
Adequate capital buffer will facilitate better management of asset erosion, if any and growth in the loan book through better risk appetite in a real sector undergoing revival.