Sydicate Bank and Andhra Bank raised capital in form of long term bonds

MUMBAI: Syndicate Bank and Andhra Bank has raised 10 years bond from the market to boost its capital adequacy ratio. Syndicate Bank raised Rs 750 crore at 8.62% and Andhra Bank raised Rs 500 crore at 8.63%.

Meanwhile, the board of United Bank of India has approved a proposal to raise Rs 1500 crore through preferential issue.

Banks need to hold capital for every new loan they give in order to absorb any losses that may arise if the borrowers defaults on the loan, according to the Basel III accord.

The board of country’s largest bank- State Bank of India (SBI) too is meeting on Monday to seek board approval for raising capital. The bank has said that it would seek approval to raise capital either thru preferential shares or tier bonds.