Private sector lender Karnataka Bank has raised Rs 250 crore by issue of non-convertible subordinated debt instruments in the nature of debenture (Lower Tier 2 Bonds) on private placement basis.
The issue of the bonds with a tenor of 10 years was opened for subscription on October 22 and closed on November 12, 2012. The Mangalore-based bank said in a statement that the Rs 125 crore issue with a right to retain oversubscription to the extent of Rs 125 crore received huge response from the investors resulting in the oversubscription by 100 per cent.
The bank’s capital to risk weighted assets ratio (CRAR) as on March 31, 2012 was 12.84% consisting of tier 1 capital of 10.86 per cent and Tier 2 capital of 1.98%. With the issue of the new bonds, the capital funds of the bank have further improved which will enable it to further expand the credit portfolio in coming days, it added.
