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Jammu & Kashmir Bank on Monday said it plans to raise up to Rs 550 crore by issuing Basel III compliant bonds in the domestic market on private placement basis.
The bank’s board will put the fund raising proposal before the shareholders at its annual general meeting on September 7, 2019.
It said it will seek shareholders’ approval for issuing unsecured fully paid-up non-convertible perpetual debt instruments (part of additional tier I capital), Basel III bonds.
The fund can be raised in one or more tranches for an aggregate amount of up to Rs 550 crore, it added.
“The implementation of Basel III guidelines has necessitated the need for banks in India to augment their capital base. This becomes important as Basel III capital requirements call for increase in quantity and quality of capital, besides providing for capital buffer during economic downturn,” the lender said.
Basel III is an international regulatory framework with a set of reforms to improve the regulation, supervision and risk management within the banking sector.
An RBI circular in January this year deferred the deadline to comply with these regulations to March 31, 2020.
The bank also said it had to seek shareholders’ consent for reappointment of former chief statistician Pronab Sen as an independent director, for which he has expressed his inability to continue.
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