IndusInd Bank to raise Rs1,000 crore via Basel III bonds
- WEF ranks India at 62nd place on Inclusive Development Index
- South Koreans burn Kim Jong Un’s photo as North Korean band leader passes
- WEF 2018: Time for India to be a statesman, not just salesman, says Uday Kotak at Davos
- CPI yet to decide on tie-up with Congress, will discuss with CPM: Suravaram Sudhakar Reddy
- FMCG firms want Union budget to focus on rural wages, job creation
New Delhi: Private player IndusInd Bank plans to raise Rs1,000 crore by issuing Basel III compliant bonds.
The bank proposes to raise funds by issue and allotment of rated, listed, non-convertible, perpetual, subordinated and unsecured Basel III compliant Bonds in nature of debentures towards non-equity regulatory additional tier I capital, IndusInd Bank said in a regulatory filing.
The bonds with face value of Rs10 lakh each for cash will aggregate Rs1,000 crore on a private placement basis, it added.
The fund raising plan is pending shareholder approval and nod from the board of directors.
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.
Banks in India are implementing the Basel III standards in phases since April 2013. They are expected to fully implement these norms by March 2019.