{"id":66587,"date":"2018-02-27T18:00:02","date_gmt":"2018-02-27T18:00:02","guid":{"rendered":"http:\/\/www.bnreport.com\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/"},"modified":"2018-02-27T18:00:02","modified_gmt":"2018-02-27T18:00:02","slug":"recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/","title":{"rendered":"Recall of AT-1 bonds to raise capital stress on banks: Icra"},"content":{"rendered":"

Kolkata: Early recall of additional tier 1 (AT-1) bonds<\/a> by banks undergoing corrective measures may put additional stress on their tier 1 capital adequacy, rating firm Icra<\/a> said Tuesday. <\/p>\n

Bank of Maharashtra<\/a> and Oriental Bank of Commerce<\/a> turned out to be the first two lenders which have sent notices to their bondholders after Reserve Bank of India<\/a> instructed these banks to exercise the early call option<\/a> as a part of reducing fund cost. <\/p>\n

Icra says that recall of AT-1 bond by banks under RBI's corrective framework would put their capital adequacy under stress and some of them may not be able to meet the tier I requirements as on March 31, 2018. <\/p>\n

"While the recapitalisation of PSBs was expected to improve their capital ratios, huge losses during the third quarter and an early recall of AT-I bonds is likely to
partially negate the recapitalisation programme," Icra said. "Depending on AT-I bonds issued by individual bank, the capital ratios can reduce by 0.7-2.0% of risk
weighted assets of these banks." <\/p>\n

During the last four years, public sector banks raised Rs 60,385 crore through AT-1 bonds to shore-up their tier-I capital ratios in the backdrop of losses, increasing capital requirements under Basel III<\/a>. The 11 banks under RBI's guidance accounted for Rs 21,900 crore of AT-I bonds, which are likely to be called off during the next few weeks, the rating firm said. <\/p>\n

It added that five more banks could come under the corrective framework, which would result in an additional recall of Rs 15,700 crore. <\/p>\n

"Some of the investors who could have bought these bonds from the secondary market<\/a> at a premium (higher than face value), may stand to lose as the early
redemption by banks is likely to be done at face value," Icra said. <\/p>\n

<\/a><\/strong> <\/a><\/p>\n

Original Article<\/a><\/p>\n

[contf]
\n[contfnew]
\n <\/p>\n

ET Markets<\/a><\/h5>\n

[contfnewc]
\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"

Kolkata: Early recall of additional tier 1 (AT-1) bonds by b..<\/p>\n","protected":false},"author":1,"featured_media":66588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-66587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nRecall of AT-1 bonds to raise capital stress on banks: Icra - Business News Report<\/title>\n<meta name=\"description\" content=\"Kolkata: Early recall of additional tier 1 (AT-1) bonds by b..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Recall of AT-1 bonds to raise capital stress on banks: Icra - Business News Report\" \/>\n<meta property=\"og:description\" content=\"Kolkata: Early recall of additional tier 1 (AT-1) bonds by b..\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/\" \/>\n<meta property=\"og:site_name\" content=\"Business News Report\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-27T18:00:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/bonds2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"672\" \/>\n\t<meta property=\"og:image:height\" content=\"504\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"infopal11\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BNReport\" \/>\n<meta name=\"twitter:site\" content=\"@BNReport\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"infopal11\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/\"},\"author\":{\"name\":\"infopal11\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\"},\"headline\":\"Recall of AT-1 bonds to raise capital stress on banks: Icra\",\"datePublished\":\"2018-02-27T18:00:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/\"},\"wordCount\":314,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/bonds2.jpg\",\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/\",\"name\":\"Recall of AT-1 bonds to raise capital stress on banks: Icra - Business News Report\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/bonds2.jpg\",\"datePublished\":\"2018-02-27T18:00:02+00:00\",\"description\":\"Kolkata: Early recall of additional tier 1 (AT-1) bonds by b..\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/bonds2.jpg\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2018\\\/02\\\/bonds2.jpg\",\"width\":672,\"height\":504},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629\",\"item\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Recall of AT-1 bonds to raise capital stress on banks: Icra\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"name\":\"Business News Report\",\"description\":\"Latest News on the World of Politics & Business\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\",\"name\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"width\":200,\"height\":50,\"caption\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Business-NewsReport-328225811095934\\\/\",\"https:\\\/\\\/x.com\\\/BNReport\",\"https:\\\/\\\/www.instagram.com\\\/business.newsreport\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\",\"name\":\"infopal11\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/author\\\/infopal11\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Recall of AT-1 bonds to raise capital stress on banks: Icra - Business News Report","description":"Kolkata: Early recall of additional tier 1 (AT-1) bonds by b..","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/","og_locale":"en_US","og_type":"article","og_title":"Recall of AT-1 bonds to raise capital stress on banks: Icra - Business News Report","og_description":"Kolkata: Early recall of additional tier 1 (AT-1) bonds by b..","og_url":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/","og_site_name":"Business News Report","article_publisher":"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","article_published_time":"2018-02-27T18:00:02+00:00","og_image":[{"width":672,"height":504,"url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/bonds2.jpg","type":"image\/jpeg"}],"author":"infopal11","twitter_card":"summary_large_image","twitter_creator":"@BNReport","twitter_site":"@BNReport","twitter_misc":{"Written by":"infopal11","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#article","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/"},"author":{"name":"infopal11","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f"},"headline":"Recall of AT-1 bonds to raise capital stress on banks: Icra","datePublished":"2018-02-27T18:00:02+00:00","mainEntityOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/"},"wordCount":314,"commentCount":0,"publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/bonds2.jpg","articleSection":["Finance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/","url":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/","name":"Recall of AT-1 bonds to raise capital stress on banks: Icra - Business News Report","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#primaryimage"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/bonds2.jpg","datePublished":"2018-02-27T18:00:02+00:00","description":"Kolkata: Early recall of additional tier 1 (AT-1) bonds by b..","breadcrumb":{"@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#primaryimage","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/bonds2.jpg","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2018\/02\/bonds2.jpg","width":672,"height":504},{"@type":"BreadcrumbList","@id":"https:\/\/www.bnreport.com\/en\/recall-of-at-1-bonds-to-raise-capital-stress-on-banks-icra\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629","item":"https:\/\/www.bnreport.com\/en\/"},{"@type":"ListItem","position":2,"name":"Recall of AT-1 bonds to raise capital stress on banks: Icra"}]},{"@type":"WebSite","@id":"https:\/\/www.bnreport.com\/en\/#website","url":"https:\/\/www.bnreport.com\/en\/","name":"Business News Report","description":"Latest News on the World of Politics & Business","publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.bnreport.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.bnreport.com\/en\/#organization","name":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a","url":"https:\/\/www.bnreport.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","width":200,"height":50,"caption":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","https:\/\/x.com\/BNReport","https:\/\/www.instagram.com\/business.newsreport"]},{"@type":"Person","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f","name":"infopal11","url":"https:\/\/www.bnreport.com\/en\/author\/infopal11\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/66587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/comments?post=66587"}],"version-history":[{"count":0,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/66587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media\/66588"}],"wp:attachment":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media?parent=66587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/categories?post=66587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/tags?post=66587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}