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India cbank urges banks to issue Tier II bonds to retail investors

Source : REUTERS
Last Updated: Thu, Jan 24, 2013 13:10 hrs

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 market.

"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 Warrier)

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