Bank of Maharashtra raises Rs 500 crore via Basel-III bonds

New Delhi: Bank of Maharashtra today said it has raised Rs 500 crore by issuing Basel III compliant bonds on a private placement basis.

"The bank has successfully raised Rs 500 crore by issue of Basel III compliant unsecured perpetual non-convertible additional tier-I bonds on private placement basis," the bank said in a regulatory filing.

The bonds have been rated as 'A hyb' by ICRA and 'A' by CARE Ltd, the bank said. The bonds will be listed on BSE and NSE.

Basel III compliant bonds are being issued by banks to raise money to improve and strengthen capital planning to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks as per Basel III Capital Regulations.

These regulations are being implemented in phases since April 1, 2013 by banks in India and they are expected to fully move to Basel III standards by March 2019.

Shares of Bank of Maharashtra closed 0.34 per cent down at Rs 29.05 on BSE today.