State Bank of Travancore has announced that it will issue Basel III tier I bonds to raise up to Rs. 600 crore. The bank has taken this step to improve regulation, to mitigate concerns on rising NPAs across the sector and potential issues in asset quality.
“The Executive Committee of the board of directors of the bank in its meeting held on December 7, 2016, has approved raising of up to Rs. 600 crore by way of issue of Basel-III compliant additional tier I bonds by private placement,” the company said in a BSE filing. Shares of the bank are trading 1.3% higher on the news as of 02:05 pm. The stock has a normalized score of 71.4 - moderately bullish.