Karnataka Bank raises Rs 300 cr through bonds

Private sector lender Karnataka Bank on Wednesday said it has raised Rs 300 crore by issuing bonds on private placement basis.

The committee of directors of board of the bank, at its meeting held on March 30, 2022, has approved the allotment of unsecured, subordinated, redeemable non-convertible, fully paid-up Basel III compliant Tier II bonds, aggregating up to Rs 300 crore on private placement basis to the successful bidders, the bank said in a regulatory filing.

To comply with Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.
These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
Indian banking system has been implementing Basel III standards in phases since April 1, 2013.

Karnataka Bank scrip closed at Rs 56.35 apiece on the BSE, up by 1.17 per cent from previous close.