UCO Bank raises Rs 500 cr by issuing Basel III compliant bonds

UCO Bank on Monday said it has raised Rs 500 crore by issuing Basel III compliant bonds.

"Our bank has issued and allotted this day 9.71 per cent unsecured rated listed redeemable non-convertible fully paid up Basel III complaint tier II bonds aggregating to Rs 500 crore," the bank said in a regulatory filing.

The bank added that the board had approved the issuance of these bonds in October.

To comply with Basel III capital regulations, banks need to improve and strengthen their capital planning processes.

These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

Indian banking system has been implementing Basel III standards in phases since April 1, 2013 and are expected to fully implement these norms by March 2020.