Business Standard

Investors upset as four banks recall Rs 109-bn additional tier 1 bonds

The official said the bank had sought clarification on this issue and based on the feedback, the recall was to be exercised

Bond, rupee
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Anup RoyNamrata Acharya
With four banks recalling their additional tier 1 bonds (AT1), issued as quasi-equity under Basel-III regulations, the stage is set for a slow death of these perpetual instruments.
 
To date, Rs 761.14 billion of these bonds have been issued in the local markets, including by private banks and Exim Bank of India. State Bank of India’s Dubai branch raised another $300 million in AT1 bonds overseas. Almost all banks have issued these bonds.
 
Of the 11 banks undergoing prompt corrective action (PCA) of the Reserve Bank of India (RBI), which restricts normal lending activities of banks, nine had

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