 "Public sector banks (PSBs) have proposed the Finance Ministry their plan to raise Rs 54,800 crore through Additional Tier-1 (AT-1) and Tier-2 bonds in the current financial year (FY25), 37 per cent more than the Rs 39,880 crore raised in FY24, accord")
Public sector banks (PSBs) have proposed the Finance Ministry their plan to raise Rs 54,800 crore through Additional Tier-1 (AT-1) and Tier-2 bonds in the current financial year (FY25), 37 per cent more than the Rs 39,880 crore raised in FY24, according to an internal document reviewed by Business Standard.
Both AT-1 and Tier-2 bonds are regulatory capital instruments used by banks to meet capital adequacy requirements under Basel III norms, but they differ in risk and structure. AT-1 bonds, which lack a fixed maturity date, are considered higher risk as they can be written off during financial distress.
