Indian
Bank proposes to raise Rs 300 crore for tier-II capital
Our
Banking Bureau
12 September 2003
 Chennai:
Indian Bank proposes to raise Rs 300 crore of long-term
subordinated debt, which will go towards strengthening
its tier-II capital.
 The approval
for this was got from the ministry of finance last week.
Negotiations with arrangers are on, says Indian Bank chairperson
and managing director Ranjana Kumar.
The
bank proposes to raise Rs 200 crore by an issue of bonds,
with a green-shoe option (extra retention out of over-subscription)
of Rs 100 crore.
 The
bank already has about Rs 200 crore of tier-II capital.
The proposed issue will take the capital adequacy ratio
past the 12-per cent mark. Indian Bank is yet to firm
up the other details of the issue, such as the tenor and
the interest rate.
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