Indian Bank to raise Rs 1,000 cr via bonds

New Delhi, State-owned Indian Bank today said it will raise up to Rs 1,000 crore by issuing Basel-III compliant bonds.

The decision was taken at the bank's board meeting held today.

"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.

Indian Bank stock closed 19.97 per cent up at Rs 186.20 on BSE.