New Delhi, Oct 12 (PTI) Public sector Andhra Bank will issue bonds on a private placement basis to raise up to Rs 1,000 crore, it said today.

“We wish to inform that the bank is issuing 7.98 per cent unsecured, fully paid up non-convertible redeemable Basel III compliant tier-2 bonds in the nature of debentures of Rs 10 lakh for cash aggregating to Rs 1,000 crore,” it said in a regulatory filing.

The issue will open for subscription on October 24 and will close on the same day, it said.

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

Basel III 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. The banks are expected to fully implement these norms by March 2019.

This will align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019.

Andhra Bank shares closed 0.63 per cent up at Rs 55.85 on BSE.

This is published unedited from the PTI feed.