Bank of India raised Basel III compliant Tier II bonds of Rs 2,000 crores at 7.88% PA

Bank of India, a public sector undertaking lender, reported on September 13 that it had raised 2,000 crores worth of Tier II bonds that were Basel III compliant at a rate of 7.88% per annum.

In a press release announcing the updates, the PSB stated that the fundraising was carried out via the Electronic Bidding Provider Platform of the NSE.

Informing more, the BoI said that it received a total of 83 bids amounting to ₹3,770 crores. "The bank received a total of 83 bids amounting to ₹3,770 crores. Out of these, there were 48 successful bidders totaling ₹2,000 crores," the BoI said.

According to details, Tier II capital is raised by RBI guidelines to increase the Bank's overall capital as well as its long-term resources.

The lender should use the proceeds of this issue for ongoing company operations rather than using the funds raised through this issuance to finance any specific project.

State Bank of India, Punjab National Bank, Union Bank of India, and UCO Bank are among the lenders.

They stated that 65% of the 6,798-gram panchayats (GP) do not have brick-and-mortar branches.

“Since banking is an essential service for financial inclusion, every GP of the state needs to be provided with a brick and mortar branch for easy access to banking services, and strengthening the direct benefit transfer system," an official said.

To cover all unbanked GPs during the current financial year, the scheme, for which a budget of 500 crore has been prepared, would be implemented gradually, he added.

“Odisha is the first state in the country to adopt such an exemplary model for providing banking services to all GPs," an official of the finance department said.