New Delhi, Oct. 22: The Oriental Bank of Commerce (OBC) today said it has successfully raised Tier II capital worth Rs 200 crore at the lowest interest rate available in the market.

The bond issue is designed to improve the bank’s capital adequacy ratio which currently hovers around 10.9 per cent, above the Reserve Bank of India’s prescribed 9 per cent limit, sources said.

“The bond issue has a currency of five years and six months and carries an attractive coupon rate of 7.15 per cent,” OBC officials said. “It was subscribed to immediately by both private and state-run banks.”

The interest rate is the lowest coupon available to banks seeking to raise Tier II capital. It was arranged by ABN Amro Securities India Pvt Ltd. Other banks that successfully raised Tier II capital are Vijaya Bank at 7.45 per cent and Indian Overseas Bank at 7.50 per cent.

The bank’s net worth stood at Rs 1,619 crore in 2001-02, up from Rs 1,548 crore in 2000-01. Operating profit for the year ended March 31 2002 increased by 71 per cent to Rs 917 crore from Rs 534 crore.

The bank also registered a 15.4 per cent increase in total deposit base to Rs 28,488 crore (2001-02) up from Rs 24,680 crore a year back. Gross non-performing assets (NPA) stood at 6.57 per cent (Rs 951 crore) against advances of Rs 14,656 for the year ended March 31, 2002, while priority sector lending was at 42.3 per cent for the same period, above the RBI’s stipulated 40 per cent.