Indian Bank proposes to raise Rs 300 crore for tier-II capital
By Our Banking Bureau | 12 Sep 2003
Chennai: Indian Bank proposes to raise Rs 300 crore of long-term subordinated debt, which will go towards strengthening its tier-II capital. The approval for this was got from the ministry of finance last week. Negotiations with arrangers are on, says Indian Bank chairperson and managing director Ranjana Kumar.
The bank proposes to raise Rs 200 crore by an issue of bonds, with a green-shoe option (extra retention out of over-subscription) of Rs 100 crore.
The bank already has about Rs 200 crore of tier-II capital. The proposed issue will take the capital adequacy ratio past the 12-per cent mark. Indian Bank is yet to firm up the other details of the issue, such as the tenor and the interest rate.