Banks set to tap bond market to lock rates, fund credit

0
17
MUMBAI: Banks are set to step up fund raising through bonds in next few weeks to take advantage of a recent fall in yields and meet capital requirements amid a pick-up in credit growth, analysts said.
State-run banks such as Bank of India and Bank of Baroda are in talks with merchant bankers to raise funds via Basel III-compliant additional tier-I perpetual bonds, according to arrangers.
Bank of India is planning to raise up to Rs 1,500 crore ($183.67 million) through tier-I bonds and may tap the market by the end of November, a senior official from the bank said on Wednesday.
“Many investors have shown their interest and accordingly approached us for participation in our additional tier-I bond issue,” said the official, who refused to be named because the matter is not public yet.
Union Bank of India has announced plans to raise up to Rs 2,200 crore via tier-II bonds, while Jammu…

Source link

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here