PremiumIndusInd Bank Ltd. canceled plans to raise debt through a sale of bonds, citing current market conditions.
A meeting of its board of directors scheduled for March 9 to discuss the sale of additional tier one and tier two bonds has been postponed, the Indian lender said in a statement on Sunday.
The decision comes after India’s central bank, which stepped in to rescue IndusInd’s rival, Yes Bank Ltd., announced it would write down the latter’s additional tier one bonds worth 108 billion rupees ($1.46 billion).
“In view of current market conditions and since the bank is adequately capitalized at present, it has been decided not to consider raising of Basel III-compliant debt capital instruments for the time being," IndusInd Bank said.
Holders of Yes Bank’s additional tier one debt investments are planning legal action against the Reserve Bank of India’s decision, the Business Standard reported, citing a March 4 letter written by investor Axis Trustees to Yes Bank.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
