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South Indian Bank raises Rs 300 crore through issue of Tier-II bonds

01 Oct 2015 Evaluate

South Indian Bank has raised Rs 300 crore through issue of Tier-II bonds. The bank has allotted 3,000 non convertible redeemable, unsecured, Basel III compliant Tier 2 bonds aggregating up to Rs 300 crore. The funds will be used for inclusion in Tier-II capital of the bank in the nature of debentures of face value Rs 10 lakh each with interest of 10.25 percent per annum for a period of 121 months.

The bank has reported 48.45% fall in its net profit at Rs 65.29 crore for first quarter ended June 30, 2015 as compared to Rs 126.65 crore for the same quarter in the previous year. However, total income of the bank has increased by 1% at Rs 1480.51 crore for quarter under review as compared to Rs 1465.84 crore for the quarter ended June 30, 2014.

The bank’s gross NPA for the April-June quarter of the current fiscal stood at 1.85%, as compared to 1.50% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 1.21% in Q1FY16.


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