YES Bank Raises Rs 3000cr from Bonds

2019 ias preliminary exam test series

YES Bank has raised Rs. 3,000 crore from bonds to fund business expansion.

With this capital raising, the bank’s Tier-I Capital Ratio will be at 12 per cent including profits and adjusted for pro-rata dividends.

The Basel-III compliant additional Tier-1 (AT1) Bonds will be listed on the BSE and its proceeds will qualify for Basel III Tier-I Capital.

Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.

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