NEW DELHI, Aug 19: Jammu & Kashmir Bank today said it plans to raise up to Rs 550 crore by issuing Basel III compliant bonds in the domestic market on private placement basis.
The lender’s board will put the fund raising proposal before the shareholders at its annual general meeting on September 7, 2019, the bank said in a regulatory filing.
It said it will seek shareholders’ approval for issuing unsecured fully paid-up non-convertible perpetual debt instruments (part of additional tier I capital), Basel III bonds.
The fund can be raised in one or more tranches for an aggregate amount of up to Rs 550 crore, it added.
“The implementation of Basel III guidelines has necessitated the need for banks in India to augment their capital base. This becomes important as Basel III capital requirements call for increase in quantity and quality of capital, besides providing for capital buffer during economic downturn,” the lender said.
Basel III is an international regulatory framework with a set of reforms to improve the regulation, supervision and risk management within the banking sector. These regulations are being implemented in India in phases with effect from April 1, 2013.
Banks in India had to comply with these regulations by March 31, 2019, three months later than the internationally agreed deadline. However, an RBI circular in January this year further deferred the deadline to March 31, 2020.
The bank also said it had to seek shareholders’ consent for reappointment of former chief statistician Pronab Sen as an independent director, for which he has expressed his inability to continue.
Sen was appointed on the board in June 2017 for a period of two years up to June 16, 2019. On June 15, the board had approved continuation of Sen’s tenure.
“Accordingly, members of the bank are requested to confirm the continuation of Pronab Sen as an independent director on the board of the bank from June 17, 2019 to the date of this AGM (September 7),” the bank said.
It will also put before the shareholders proposals to appoint and reappoint some members on its board.
As on date, the bank has a total of 10 board members, including interim Chairman and Managing Director R K Chibber and Sen. (PTI)
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