Indian Bank vaults after raising Rs 1,048 crore via AT-1 bonds

Indian Bank jumped 9.29% to Rs 93.55 after the state-owned bank raised Rs 1048 crore through additional tier 1 perpetual bonds to augment Basel III capital ratios.

The bank raised the capital at Rs 8.44% coupon, placing the bonds on private placement basis, it said in a regulatory filing Tuesday. The interest is payable annually.

The stock extended gains for fifth day in a row on follow-up buying. The stock has added 37.37% in five trading sessions from its recent closing low of Rs 68.10 hit on 2 December 2020.

During the same period, the benchmark Nifty 50 index gained 2.65% while the Nifty PSU Bank index rose 17.95%.

Indian Bank is a public sector bank. The Government of India held 88.06% stake in the bank as on 30 September 2020.

The bank reported 15% rise in net profit to Rs 412.28 crore on a 93% jump in total income to Rs 11,669.12 crore in Q2 FY21 over Q2 FY20.

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