Bangalore based Karnataka Bank has raised Rs 250 crore by issuing of the 10-year lower tier-2 bonds.
Karnataka Bank also informed to Bombay Stock Exchange (BSE) that the bank has raised Rs 250 crore by issuing of the lower two tier bonds which are non-convertible subordinated debt instruments which are in the nature of debentures.
The issue of the two tier bond with the tenure of 10 years was opened for subscription on October 22nd and it closed on November 12th, 2012.
On March, 31, the capital to risk weighted assets ratio (CRAR) of Karnataka Bank was 12.84 per cent. Tier- I capital was around 10.86 per cent and Tier-II capital consisted 1.98 per cent.
The issue of the bonds has improved the capital funds and the bank has informed this to BSE. And due to this the bank will further expand the credit portfolio in the coming days.