New Delhi: IDBI Bank said it will raise Rs 20,000 crore through bond issuance in more than one tranches from domestic market next fiscal to fund its business growth.
SBI has recently taken shareholder approval for raising Rs 15,000 crore from public issue, global issuance or domestic private placement. The fund raising plan is considered to be one of the highest announced by any public sector banks. The board has approved “the proposal for Rupee bond issuance limit of Rs 20,000 crore to be borrowed in one or more tranches comprising of senior or infrastructure bonds, Basel III compliant Tier II or additional Tier 1 Bonds by way of private placement or public issue during 2015-16…,” IDBI Bank said in a filing in the BSE.
He said positive thing about bond issuance is that it is a long-term borrowing to address asset liability mismatch of the bank. Besides, there is replacement of earlier borrowings and deposit mobilisation, he added. Shares of IDBI Bank closed at Rs 78.05 per unit, down 4.76 per cent on the BSE.
