The board of directors of Karnataka Bank Ltd has approved a proposal to augment the capital through Basel-III compliant tier-2 instruments.
The bank informed stock exchanges that the board of directors, which met on Tuesday, has approved the proposal for issuance of Basel III compliant unsecured tier-2 subordinated bonds in the nature of debentures with a base issue size of ₹150 crore and a green shoe option to retain over-subscription up to ₹150 crore, aggregating up to ₹300 crore, in one or more tranches on private placement basis to the eligible investors.
On BSE, the scrip of the bank was at ₹57.40, down by 1.29 per cent, at 12.30 pm.