MUMBAI, Jan 24 (Reuters) - The Reserve Bank of India on
Thursday urged banks to raise capital by issuing subordinated
debt to retail investors as well to deepen the corporate bond
"However, while doing so banks are advised to adhere to the
conditions prescribed in our circular...so as to ensure that the
investor is aware of the risk characteristics of regulatory
capital instruments," the RBI said in a circular.
Banks usually raise Tier II capital by issuing subordinated
debt to banks and large investors.
(Reporting by Suvashree Dey Choudhury; Editing by Gopakumar