South Indian Bank has announced the successful fund raising of ₹490 crore by way of private placement of Basel III compliant Tier 2 bonds.
Besides augmenting Tier 2 capital, this exercise would further strengthen the Capital Adequacy (CRAR) position of the bank to support the targeted business growth. The capital position of SIB as on September 30, was 11.74 per cent which is well above the minimum required level of 10.25 per cent.
VG Mathew, MD and CEO of South Indian Bank, said “the infusion of fresh capital would improve the CRAR by 108 bps, which will take care of the capital requirement for the coming year at the targeted business growth of 18 per cent.