New Delhi: Indian Bank has said it will raise up to Rs 1,000 crore by issuing Basel III-compliant bonds.
The decision was taken at the state-owned bank's board meeting held on Tuesday.
"Board of directors of the bank in the meeting held today accorded approval to raise Basel-III compliant additional tier 1 and/or tier 2 bonds up to Rs 1,000 crore," the bank said in a regulatory filing.
The company said it will raise the amount by issuing bonds in one or more tranches in the current or subsequent years based on the requirement.
Basel-III norms are global regulatory set of standards aimed to reform, improve regulation, supervision and risk management within the banking sector.
It requires a tighter capital requirement, wherein a bank's regulatory capital is divided into tier-1 and tier-2. Tier 1 is subdivided into common equity tier-1 and additional tier-1 (AT 1) capital.
Banks in India have been implementing Basel III capital standards since April 2013 in a phased manner. They are required to comply with them fully by March 2019.
Shares in Indian Bank, on Tuesday, ended 19.97 per cent higher at Rs 186.20 apiece on the BSE, whose benchmark Sensex index finished down 0.08 per cent.
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