Financial Daily from THE HINDU group of publications
Wednesday, Feb 08, 2006
Financial Daily from THE HINDU group of publications Wednesday, Feb 08, 2006 |
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Money & Banking
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Public Sector Banks BoM hikes coupon rate on Tier-II bonds Our Bureau
Mumbai , Feb. 7 BANK of Maharashtra has increased the rate on its Tier-II bond issue, by 20 basis points from 7.5 per cent to 7.7 per cent. This is in line with the increase in the reverse repo rate by 0.25 percentage points, said a senior official of the bank. This is the second tranche of bond issue with a maturity of seven years. Last month, the bank raised Rs 200 crore at the rate of 7.7 per cent. The bank plans to raise Rs 450 crore in all, including greenshoe option of Rs 50 crore. The issue includes an option to retain over-subscription to the extent of Rs 225 crore. The bank also extended the date of closure of the issue from February 4 to February 17. The funds will be used to maintain capital adequacy in accordance with the Basel II norms, the official said. "Currently, our CAR is close to 11 per cent and will be in the same range post the issue because some of risk weightages will increase," the official said. The bank has no plans to increase its retail lending or deposit rates immediately, the official added.
More Stories on : Public Sector Banks | Corporate Bonds
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