Additional Tier 1 Bond

In FY25 so far, banks have raised Rs 8,000 crore through perpetual bonds. In comparison, banks raised Rs 20,706 crore in FY24 and Rs 31,394 crore in FY23

The issuance was tightly priced, said market participants

"Another instance of AT-1 bond write-off questions seniority of claims of AT-1 bond holders and dampens sentiments for AT-1 market issuances," Citi analysts wrote in a note

In the race to secure UBS Group AG's purchase, the govt invoked the need for stability and emergency legislation to override two key aspects of open markets: competition law and shareholder rights

UCO Bank may also issue AT-1 bonds; banks raising funds amid strong loan growth

The stock tanks 8.33% following Bombay HC order and weak Q3 showing

Lenders, particularly state-owned, turn to debt capital markets to finance hefty demand for loans

Public sector lenders would end up issuing around Rs 13,500 cr worth of such bonds in coming weeks

Bank intends to raise before Mar23 though approval is till 2024

Analysts cite credit growth surge, better risk profile of tier-2 bonds behind the rush

Over the last couple of weeks, banks have made a beeline to raise funds by issuing debt instruments

The cost of paying coupon on tier-1 bonds, a form of debt, is less than servicing equity capital

Lender claims overwhelming response from investors, with bids of Rs 9,647 crore; issue oversubscribed 5x against base size of Rs 2,000 crore

The bank had notified an amount of Rs 7,000 crore to be raised through a single tranche of AT-1 bonds in order to augment capital.

Canara Bank plans Rs 1,500-2,000 cr AT1 sale; Axis Bank, too, mulls fundraise

The bonds will have a call option from the fifth year onwards and are rated AA+ by CRISIL, CARE and India Ratings, sources said

Four PSU banks have raised Rs 7,800 crore AT-1 bonds so far in FY23 as credit demand booms

India's Bank of Baroda plans to raise at least 5 billion rupees ($62.52 million) through sale of Basel III compliant additional Tier I perpetual bonds, say three merchant bankers

The issuance of Additional Tier-1 (AT-1) bonds by banks is likely to more than halve to Rs 20,000 crore this fiscal compared to the all-time high amount of Rs 42,800 crore raised in FY22, says a report. AT-1 bonds are those debt instruments without a terminal maturity date. In FY22, a majority of the funds raised through the instrument were to refinance bond issues done in FY17, Icra Ratings said in the report on Monday. Majority of the bonds have a call option in the fifth year, resulting in the significant jump in new issuances which are basically for refinancing the earlier obligations. The issuances in FY17 stood at Rs 32,100 crore for the state-owned banks and Rs 10,900 crore for private sector lenders. In FY18, the amounts stood at Rs 10,900 crore and Rs 23,500 crore, respectively, Icra said. According to the report, lenders have already refinanced the FY18 bonds because of the lower interest rates in FY22. Lenders have already raised Rs 5,320 crore from the instrument in t

While SBI may opt for Rs 4,000-crore tier-II bond sale, Bank of Baroda looks to issue AT-1 bonds worth Rs 3,000-4000 crore in tranches