Latest News | AU Small Finance Bank Raises Rs 770 Cr Via Tier-II Bond

New Delhi, Mar 28 (PTI) AU Small Finance Bank (AU SFB) on Friday said it has raised Rs 770 crore through Tier-II bonds to fund business growth.

The bonds with 10-year maturity carry a coupon rate of 9.20 per cent per annum, AU Small Finance Bank said in a statement.

Also Read | Banking Rules Changing From April 1, 2025: From Change in Minimum Balance Requirement to Revised Interest Rates, Check New Banking Rules Coming Into Effect From Next Month.

The current capital raise is expected to increase the capital adequacy ratio of the bank by about 1 per cent, it said.

Overall, the bank remains well capitalised and had an overall capital adequacy ratio of 19.9 per cent at the end of the third quarter of FY25, including interim profits for nine months of FY25, it said.

Also Read | What Is Electricity Bill Scam? Know How To Be Safe as TGSPDCL Alerts Consumers About New Online Fraud in Hyderabad.

With this fund raise, it said, the bank has achieved one of the largest bond issuances by any small finance bank amidst adverse market conditions exacerbated by a tight liquidity environment with deal closing on the last working day of 2024-25.

The Jaipur-based lender had last raised capital in August 2022 for a total of Rs 2,500 crore comprising of Tier I capital of Rs 2,000 crore and Tier II capital of Rs 500 crore.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)