State-owned Central Bank of India on Friday said that the bank’s board had approved the proposal of raising funds of up to Rs 500 crore by issuing Basel III compliant bonds.
“The capital raising committee of the board of directors of the bank at its meeting held today i.e., December 11, 2020, considered and approved the proposal for raising of capital funds up to Rs 500 crore,” Central Bank of India said in a regulatory filing.
The funds will be raised by issuing non-convertible redeemable unsecured Basel III compliant Tier 2 bonds in the nature of promissory notes, it said. Promissory notes are debt instruments in which issuer promises the lender to repay the principal amount with interest, allowing companies or individuals to raise funds other than banks.
The bank had reported an increase in the net profit of over 20 per cent at Rs 161 crore for the quarter ended on September 30, against Rs 134 crore in the same quarter a year ago. During the September quarter, the bank’s total income grew 2 per cent to Rs 6,833.94 crore from Rs 6,703.71 crore in the previous year period. Operating profit of the lender also registered a growth of 42.16 per cent to Rs 1,458 crore, as compared to Rs 1,026 crore in the year ago period.