Private sector lender IndusInd Bank has raised Rs 1,000 crore by issuing bonds compliant with Basel III standards. The board of directors have passed the resolution for the issuance of Basel III compliant bonds towards non-equity additional tier I capital for cash aggregating to Rs 1,000 crore on private placement, the bank said in a regulatory filing. The bonds, in the nature of debentures, are of face value of Rs 10 lakh each.
They have been rated stable 'AA' both by Crisil and India Ratings & Research. India is implementing globally accepted Basel III Capital Regulations for banks since April 1, 2013 to become fully compliant with the norms by March 2019. The standards were introduced after the 2008 global economic crisis to make banks more resilient to sub-prime shocks. It requires banks to improve on their capital planning to meet contingencies. Stock of IndusInd Bank closed 0.38 per cent down at Rs 1,379.65 on BSE.