DCB Bank has raised ₹300 crore via the issue and allotment of tier-II bonds at a coupon rate of 9.35 per cent, the private sector lender said in a release.

The unsecured, subordinated, non-convertible, fully paid-up tier-II bonds have a face value of ₹1 crore each, and a tenure of 10 years, the release said, adding the bank may choose to exercise a call option post the completion of five years. The bonds are rated ‘AA-’ by CRISIL.

The bank will use the proceeds to support business growth and further improve its capital adequacy, it said.

Also read: RBI lets DSP Investment Managers to hike stake in DCB Bank to 9.99%

DCB Bank had 418 branches across India as of December 2022, and over 10 lakh active customers.