New Delhi:State-owned Allahabad Bank on Friday said it has raised Rs500 crore to comply with the global banking standards under Basel-III norms.

The bank had earlier in May informed about getting board approval to raise additional tier I capital worth Rs2,000 crore through private placement in one or more tranches within this fiscal.

“The bank has on date successfully raised additional tier I capital of bank through private placement of AT 1 perpetual bonds aggregating to 500 crore," Allahabad Bank said in a regulatory filing. The bonds carry a coupon rate of 10% per annum.

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 1 April 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 1 January 2019.

Stock of the bank closed 1.01% down at Rs73.40 apiece on BSE on Friday.