Share price of Bank of India gained more than one per cent on Friday, October 1, a day after state-run lender raised Rs 18,000 crore by issuing Basel-III-compliant bonds. Shares of Bank of India were last trading 1.62 per cent higher at Rs 56.35 on the BSE.
Bank of India shares opened on the BSE at Rs 55.45, touching an intra day high of Rs 56.45, and an intra day low of Rs 54.75, in the trading session so far.
The bank raised the amount by Basel-III-compliant tier-II bonds on September 29 on a private placement basis, through the NSE EBP platform at a coupon of 7.14 per cent, according to its statement. Also, the issue was over-subscribed by two times.
Bank of India also concluded the qualified institutional placement (QIP) issue of Rs 2,550 crore in August 2021, and with the issuance of QIP, the government’s stake in the bank has reduced to 81.41 per cent, from 90.34 per cent earlier.
Earlier, the Bank had raised Rs 1,352 crore of Basel-III compliant additional Tier-1 Bonds on a private placement basis, added the bank in its statement. The adequate capital buffer will facilitate a better management of the asset erosion, and the growth in the loan book through better risk appetite.
On the NSE, Bank of India opened at Rs 55.40, registering an intra day high of Rs 56.45 and an intra day low of Rs 54.70, in the session so far. It was last trading 1.26 per cent higher at Rs 56.20 on the NSE.
At 2:25 pm, the S&P BSE Sensex was trading 0.70 per cent lower at 58,713.74, while the blue chip NSE Nifty 50 was trading 0.61 per cent lower at 17,511.05.