IndusInd Bank has received board approval to raise as much as R2,000 crore through long-term infrastructure bonds and subordinated non-convertible debentures (NCDs), according to a company filing with the BSE.
The bonds will be eligible to be included as additional tier-I and tier-II capital of the bank. “Approval of shareholders of the bank in terms of the provisions of Companies Act, 2013, is proposed to be obtained by way of postal ballot,” the filing said.
Last year, the RBI allowed banks to raise money through infra bonds and lend the funds to infrastructure and affordable housing projects. These funds are exempt from the RBI’s Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.
The board appointed Romesh Sobti, managing director & CEO, SV Zaregaonkar, chief financial officer, and Haresh Gajwani, company secretary, as persons designated for conduct of the entire postal ballot process, according to the statement.
It also added that Sobti has been authorised by the board for the finalisation of terms and conditions for issuance of long-term bonds/NCDs, to finalise the calendar of events with regards to postal ballot, to appoint various intermediaries, and to sign, execute and enter into agreements with the intermediaries.
Earlier this month, Punjab National Bank had raised R1,000 crore via infra bonds. Last year, Axis Bank managed to raise R5,705 crore through infrastructure bonds in December 2014, while ICICI Bank had issued infra bonds worth R3,900 crore in September.