Credit rating agency, ICRA has assigned the ‘AA+(hyb)’ rating with a stable outlook to the Rs 500 crore Basel-III compliant Tier-II bond programme of Vijaya Bank. The letters “hyb” in parenthesis suffixed to a rating symbol stand for “hybrid”, indicating that the rated instrument is a hybrid subordinated instrument with equity-like loss-absorption features; such features may translate into higher levels of rating transition and loss-severity vis-à-vis conventional debt instruments.
The rated Tier-II bonds are expected to absorb losses once “Point of Non Viability” (PONV) trigger is invoked. ICRA has a ‘AA+(hyb)’ with a stable outlook rating outstanding on Rs 500 crore Basel-III compliant Tier-II bond programme of the Bank. The total rated amount currently stands at Rs 1000 crore.
Vijaya Bank, the Karnataka-based bank offers various products and services specific to various segments such as it has saving accounts for children, scheme for women clientele, credit facilities to minority communities like Zoroastrians, Buddhists are among others.
