Dena Bank plans to raise Rs 1,000 crore from bonds

The bank is planning to raise Basel-III compliant Additional Tier 1 (AT1) bonds for an amount of Rs 1,000 crore, through private placement, Dena Bank said in a statement Tuesday.

New Delhi: State-owned Dena Bank is looking to raise Rs 1,000 crore from bonds to fund its growth plans.

The bank is planning to raise Basel-III compliant Additional Tier 1 (AT1) bonds for an amount of Rs 1,000 crore, through private placement, Dena Bank said in a statement Tuesday.

Under the Basel-III norms, AT-1 bonds come with loss absorbency features, which means in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.

AT-1 bonds, which qualify as core or equity capital, are one of the means of raising capital by public sector banks that require Rs 2.40 lakh crore by March 2019 to meet global norms on capital adequacy (Basel III).

Shares in Dena Bank closed at Rs 60.45 per unit on the BSE, down 3.90 percent from the previous close.