In a regulatory filing the largest state-run lender announced today "The committee of directors for capital raising accorded its approval today to allot 20,000 AT1 Basel-III compliant non-convertible, perpetual, subordinated bonds in the nature of debentures... aggregating Rs 2,000 crore to various investors".
The state-run bank is planning to mop up funds to the tune of Rs. 2000 crore by issuing Basel-III compliant bonds to several categories of investors.
Further the bank in regard to the return or coupon rate on bonds said that these bonds will earn a coupon rate of 8.15% on an annual basis and would feature a call option after 5 years time or anniversary date therafter. The shares of the bank were trading lower by2.26% at 300.7 Rs. At 3:05 pm on BSE.