The state-run bank raised $500 million from overseas market, the second and final tranche under its medium term note programme size of $1 billion
New Delhi: State-owned Syndicate Bank has raised $500 million (about Rs2,600 crore) through bonds to fund its overseas business growth, reports PTI.
"We have raised from overseas market $500 million, the second and final tranche under the bank's MTN (medium term note) programme size of $1 billion," a senior Syndicate Bank official said.
The bond with maturity period of 5.5 years carries a coupon rate of 4.125% per annum payable semi-annually in arrears.
The money raised would be utilised for expanding operation of the bank's London branch functioning since 1976, the official said.
The services rendered at its London branch include corporate lending, participation in syndications, handling Letters of Credit and Guarantees transactions, trade finance, NRI services, ECBs and international treasury services.
Syndicate Bank has reported 43.3% increase in net profit at Rs463 crore for the second quarter ended September.
The bank had a net profit of Rs323 crore during the same quarter of the previous fiscal.
However, gross NPAs rose marginally to 2.47% of loan assets as on September 2012 as compared to 2.38% at the end of second quarter of the previous fiscal.
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