New Delhi, Apr 5 (PTI) Private player IndusInd Bank plans to raise Rs 1,000 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 Rs 10 lakh each for cash will aggregate Rs 1,000 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.
The stock closed 0.22 per cent down at Rs 1,400.20 on BSE today.
This is published unedited from the PTI feed.