Three private-sector lenders namely IDFC First Bank, Yes Bank, and IndusInd Bank on Tuesday raised Rs 700 crore jointly via short term certificate of deposits (CDs), offering rates that are not surprising despite stock market reactions to those lenders.
This raise ends market speculations that investors are asking for higher premium in a bid to subscribe securities issued by banks apparently facing tough times.
While IDFC First Bank raised Rs 300 crore via three-month CD offering 6 percent, IndusInd Bank and Yes Bank collected up to Rs 200 crore each with six-month and 12-month maturities. Both the banks are now operating under new management
While IndusIndia Bank paid 5.99 percent, Yes Bank branched out 8.5 percent.
Equity investors neglected IndusInd Bank shares with it losing over 12 percent value Tuesday.
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