ALSO READAllahabad Bank Q4 net profit at Rs 111 cr as provisions fall Allahabad Bank cuts MCLR by up to 0.15% from today Allahabad Bank logs Q1 profit of Rs 29 crore Allahabad Bank raises Rs 100 cr through bonds Allahabad Bank reports standalone net profit of Rs 111.16 crore in the March 2017 quarter
State-owned Allahabad Bank today said it has raised Rs 600 crore through private placement of bonds.
The lender has on date successfully raised Additional Tier I (AT-1) capital of bank through private placement of AT 1 perpetual bonds Series III aggregating to Rs 600 crore, Allahabad Bank said in a regulatory filing on stock exchanges.
The bond carries an annual coupon of 9.34 per cent, it said.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.
AT-1 bonds, which qualify as core or equity capital, are one of the means of raising capital by banks.
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