 "South Indian Bank net profit up 45.6%")
South Indian Bank’s recent decision to not redeem its tier-2 bonds before maturity is unlikely to have significant long-term market implications for the banking sector, Fitch Ratings said on Monday.
“We believe the action is bank-specific and not necessarily representative of the broader market, given the associated reputational risk,” Fitch said.
On November 25, reports quoted a spokesperson from South Indian Bank saying that the private sector lender had chosen to not exercise a five-year call option on tier-2 bonds due at the end of the previous month. A call option refers to the choice that a bank has to
