Public sector lender Indian Overseas Bank (IOB) said on Friday that the board has approved to raise 300 million rupees on a personal placement basis through the approved global Basel III complaint bond. "The board of directors of the bank has circular resolution ... For the issuance of level of 200 crore rupees, the approval has been approved to raise Tier II capital by issuing the second Basal III compliance bond, in which the green shoe option of an additional Rs 100 crore rupees With Rs 300 crore in one or more branches on a personal placement basis, "Indian Overseas Bank said in a regulatory filing.
In order to comply with Basel-III Capital Rules, banks need to improve and strengthen their capital planning processes globally. These criteria are being applied to reduce the worries on the potential stress on the quality of the property and the resulting effect on the performance and profitability of the banks. The Indian banking system is implementing Basel III standards in phases starting from April 1, 2013. Banks are expected to implement these norms fully till March 2019. It will align the full implementation of Basel III in India near the agreed date of January 1, 2019. Indian Overseas Bank's shares were trading at 1.03 per cent lower on BSE at Rs 14.35.