InvestorQ : Why does Indian Bank plan to raise Rs.5000 crore in the market?
Dia Deshpande made post

Why does Indian Bank plan to raise Rs.5000 crore in the market?

Answer
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Ria Jain answered.
2 months ago


Indian Bank plans to raise Rs.5000 crore through the issue of bonds to fund its business growth and also ensure comfortable capital adequacy. The bank is also preparing the ground for a likely spurt in non-performing assets and customer defaults once the EMI moratorium is eventually lifted towards the end of August this year.

Indian Bank board approved raising Basel-III compliant Tier-1 / Tier-2 bonds up to Rs.5000 crore in a single tranche or in multiple tranches depending on the requirement. This becomes critical in the light of the fact that Indian Bank had announced the widening of its reported net loss at Rs.217.74 crore for the Mar-20 quarter due to higher provisions.