New Delhi: Indian Bank, a prominent public sector bank, has received the Reserve Bank of India (RBI) approval to exercise the call option on its Basel III compliant Tier 2 Bonds Series V, valued at ₹2,000 crores. This regulatory clearance removes the final hurdle for the corporate action, scheduled for 13th January 2026.
RBI Approval and Regulatory Compliance
The bank announced the RBI approval through its official communication dated 29th December 2025, following an earlier letter on 18th December 2025. The approval ensures compliance with Basel III norms and regulatory oversight requirements, allowing Indian Bank to proceed with the call option exercise on its outstanding bonds.
The move underscores the bank’s adherence to prudential regulatory frameworks and strengthens its ability to manage its capital structure effectively.
Bond Details and Timeline
The Tier 2 Bonds Series V were originally issued in January 2021, carrying a 6.18% coupon rate. Key details of the bonds are as follows:
- ISIN Code: INE562A08081
- Bond Description: 6.18% Indian Bank Basel III Compliant Tier 2 Bonds Series V
- Issue/Allotment Date: January 13, 2021
- First Call Option Date: January 13, 2026
- Record Date: December 29, 2025
- Bond Value: ₹2,000.00 crores
- Coupon Rate: 6.18%
The record date serves as the cut-off for determining eligible bondholders for the call option exercise, ensuring proper identification of participants in this corporate action.
Corporate Action and Capital Management
With RBI approval now secured, Indian Bank is set to exercise the call option on 13th January 2026, effectively optimizing its capital structure under Basel III regulations. The Tier 2 bonds form an essential component of the bank’s supplementary capital, and the successful completion of this exercise will enhance the bank’s ability to manage its regulatory capital requirements efficiently.
The bank has ensured transparency throughout the process, providing regular updates to stock exchanges in line with SEBI LODR Regulations, 2015, maintaining proper disclosure to all stakeholders and market participants.
About Indian Bank
Indian Bank is a leading public sector bank in India, offering a wide range of banking and financial services to retail, corporate, and institutional customers. The bank focuses on delivering sustainable growth while adhering to regulatory norms and promoting transparency in all its operations.
About Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) is India’s central bank, responsible for regulating monetary policy, issuing currency, supervising banks, and maintaining financial stability. It ensures that banking institutions comply with prudential norms, safeguarding the interests of depositors and maintaining a sound financial system in the country.
