Syndicate Bank raises USD 500 million through bonds

State-owned Syndicate Bank has raised USD 500 million (about Rs 2,600 crore) through bonds to fund its overseas business growth.

"We have raised from overseas market USD 500 million, the second and final tranche under the bank's MTN (medium term note) programme size of USD 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 cent per annum payable semi-annually in arrear.

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 per cent increase in net profit at Rs 463 crore for the second quarter ended September. The bank had a net profit of Rs 323 crore during the same quarter of the previous fiscal.

However, gross NPAs rose marginally to 2.47 per cent of loan assets as on September 30, 2012 as compared to 2.38 per cent at the end of second quarter of the previous fiscal.

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