Credit rating agency, CARE has assigned ‘AA+’ rating to the BASEL III Tier II Bond Issue worth Rs 1500 crore of Syndicate Bank. Tier II bonds under Basel III are characterized by a ‘Point of Non-Viability’ (PONV) trigger due to which the investor mainly suffer a loss of principal.
The rating factors in the majority ownership by the Government of India (GoI), comfortable capitalization levels and the bank’s well-diversified credit portfolio.
Syndicate Bank (SB) is a Manipal-based public sector bank which was established in 1925. As on March 31, 2013, GOI holds a majority stake of 66.17% in the bank.
