Page 70 - Additional Tier News Today

According to the circular, which comes into effect on April 1, a mutual fund must not hold more 10 per cent of such bonds from a single issuer, under all its schemes taken together

AMFI comes out to support SEBI on AT1 Bonds March 12, 2021 × Even as the Department of Financial Services has asked SEBI to withdraw a circular on Additional Tier 1 (AT1) perpetual bonds citing risk to the mutual fund industry, the MF industry body -- AMFI has come out in support of the same SEBI circular. It is a peculiar situation now and the Finance Minister may have to intervene, sources told BusinessLine. AMFI is a trade body that represents the MF industry, however DFS is a government ...

FinMins letter stated that the change will lead to large NAV swings as the mutual funds will look to sell these bonds anticipating redemptions by investors. This in turn could create a panic in the debt market

Withdraw This Valuation Directive Quick takes, analyses and macro-level views on all contemporary economic, financial and political events. The Securities and Exchange Board of India’s (Sebi) directive that mutual funds value perpetual bonds with special characteristics as if they would be redeemed in 100 years is disruptive and should be withdrawn. The present value of a bond’s maturity value 100 years from now would be a fraction of the value imputed on the assumpt...

The restrictions are for debt instruments with special features like subordination to equity and/or convertible to equity upon trigger of a pre-specified event for loss absorption.

IDBI Bank out of PCA framework March 10, 2021 This is following the lender’s written commitment on complying with PCA norms The Reserve Bank of India has decided to take IDBI Bank out of the Prompt Corrective Action (PCA) framework, subject to certain conditions and continuous monitoring. This development comes in the backdrop of the Budget announcement that the government is working towards strategic disinvestment of its stake in IDBI Bank in FY2022. The central bank had invoked the PCA agai...

What is the Supplementary Leverage Ratio and Why is it Important? Posted on 03/04/2021 Supplementary Leverage Ratio is also known as SLR. SLR (%) = Tier 1 Capital / Total Leverage Exposure Tier 1 Capital = As defined by U.S. Basel III = Common Equity Tier 1 and Additional Tier 1 capital, subject to adjustments, dedications, and transitional arrangements. Total Leverage Exposure = Both on-balance sheet and off-balance sheet exposures such as over-the-counter derivatives, cleared derivatives, re...

IDBI Bank is planning to set off accumulated losses of about Rs 44,500 crore against the balance standing to the credit of the Securities Premium Account (SPA) after the declaration of its fourth quarter (Q4FY21) financial results. According to the Draft Scheme for setting off accumulated losses as on April 01, 2021 against SPA, this balance sheet neutral exercise of re-arrangement of liabilities will enable the bank to represent its true financial position. It will also help the bank to raise ...

Quick to adapt In a rapidly changing market, one bank picked the right deals and harnessed Asia’s growing demand for socially responsible investments to fund Covid-19 recovery efforts. For its response to unprecedented conditions, HSBC is IFR’s Asia Bond House of the Year. Asia’s primary bond markets started 2020 on a tear, before issuance ground to a halt in mid-March as global markets plunged because of the coronavirus pandemic. In late March and April, Asian high-grade issuers took the...

Bank of Ceylon delivers Rs. 23.5 billion PBT for 2020 February, 27, 2021 PBT for the year - Rs. 23.5 billion Gross Loans - a milestone reached – Rs. 2.1 trillion with 28% growth Deposit base - Rs. 2.5 trillion with 23% growth Additional Tier one qualified Bond – raised Rs. 15 billion   The year 2020 become an exceptional year devastating almost all the economies of the world and Sri Lanka being no exception has by now caught the second wave of the COVID - 19 pandemic. Among all these unexp...