New Delhi: State-owned Bank of Maharashtra (BoM) Monday raised Rs 1,000 crore from bonds to funds business growth.
The raising of AT1 (additional Tier-I), Basel III compliant Bonds of Rs 500 crore with green shoe option of Rs 500 crore is fully subscribed and the bank has closed the issue on January 10, BoM said in a statement.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.
BoM said: "The bank is exercising the green shoe option and will allot the bonds amounting to Rs 1,000 crore as per subscription amount received from the investors."
AT-1 bonds, which qualify as core or equity capital, are one of the means of raising capital by public sector banks that require Rs 2.40 lakh crore by March 2019 to meet global norms on capital adequacy (Basel III).
Shares of BoM closed flat at Rs 44 per unit on the BSE.
