IndusInd Bank is all set to raise around Rs 2,000 crore by issuing infrastructure bonds. The bank’s board of directors had, at their meeting held on January 13, approved the proposal for issuance of long-term infrastructure bonds, and subordinated non-convertible debentures (NCDs)/bonds eligible to be included as additional tier-1 and tier-2 capital of the bank up to Rs 2,000 crore on a private placement basis.
Last year, the Reserve Bank of India had allowed banks to raise funds by selling special longterm bonds that are exempt from reserve requirements. The funds raised are also exempt from priority-sector norms under which banks have to channel 40% of the loans to agriculture, small businesses and weaker sections of the society, making the sale of these bonds attractive for lenders that finance infrastructure projects.
