The announcement to defer plans comes a day after a severe hit in the offing for investors in the same instrument in the proposed restructuring plan for its peer Yes Bank, wherein over Rs 10,800 crore of bets is set to be wiped out in full.
“In view of the current market conditions and since the bank is adequately capitalised at present, it has been decided not to consider raising of Basel-III compliant debt capital instruments for the time being, the bank informed the bourses late in the evening.
The board meeting scheduled for March 9 has also been deferred, it added.
The original plan was to borrow in local or foreign currency through AT-1 instrument or tier-2 capital, it said.
The bond holders are contemplating to move court against the plan.
However, there is a view among a few that the bond holders have signed up to be given the last preference in case of restructuring like this.
This constituency says the holders were given higher coupon or interest rates for the same reason.