Banks raise Rs 25,000 crore via AT-1 bonds in Apr-Dec 2016

ICRA said the capital requirement for PSBs in 2016-17 is pegged at Rs 45,000-50,000 crore

Commercial banks in India, especially public sector ones, have raised capital worth over Rs 25,000 crore through additional tier-1 (AT-1) bonds in April-December 2016, way higher than just Rs 3,800 crore raised via these bonds in financial year 2015-16.

Karthik Srinivasan, Senior Vice President, Icra said the pressure on internal capital generation, relatively better investor appetite and increased capital requirements helped banks raise Rs 25,030 of Additional Tier-1 (AT-1) bonds during nine months ended December 2017. Public sector banks (PSBs) raised Rs 19,530 crore while their private sector counterparts raised Rs 5,500 crore.

More AT-1 issuances are expected