Page 5 - BANKING FINANCE NOVEMBER 2023

BANK UPDATE

Banking

News

Nabard raises Rs. 1,040 SBI raises Rs. 10000 crore leadership positions at various institu-
tions, including Karur Vysya Bank Lim-
crore via infra bonds ited and Citigroup. Prior to joining SIB,

Nabard has issued India's first 'AAA' SBI announced that it raised Rs. 10,000 Seshadri was associated with the Karur
rated Indian Rupee denominated So- crore after issuing 15-year infrastruc- Vysya Bank (KVB) in a similar role.
cial Bonds aggregating Rs. 1,040.50 ture bonds at the coupon rate of 7.54%.
crore at a coupon rate of 7.63 per cent. The bank said that the proceeds will be Foreign firms without PAN
The bonds (redeemable, taxable, non- directed towards bolstering long-term
convertible, non priority sector, unse- resources for funding critical infrastruc- can open bank A/cs in
cured, social securities of face value Rs. ture projects and supporting the afford- GIFT City
1 lakh each) of five-years tenure were able housing segment. Non-residents and foreign companies
issued privately to eligible institutional SBI said that the bank attracted bids of opening bank accounts in IFSC Gift City
investors, as per the Development Fi- Rs. 21,698 crores, a staggering 4.34 will not have to furnish PAN and instead
nance Institution's (DFI) statement. times the base issue size, indicating file a declaration. The nonresident or
The base issue size of the social bonds robust demand for these financial in- the foreign company opening a bank
was Rs. 1,000 crore, with an option to struments. The bank further informed account at the International Financial
retain oversubscription up to Rs. 2,000 that the investors range from various Services Centres (IFSC) will have to file
crore. NABARD said it received bids sectors including provident funds, pen- a declaration in Form 60 and should
aggregating Rs. 8,590.50 crore but sion funds, insurance companies, mu- not have any tax liabilities in India.
accepted Rs. 1,040.50 crore at coupon tual funds, corporates, etc. The Finance Ministry has amended In-
rate of 7.63 per cent. come Tax Rules exempting nonresi-
The DFI noted that it recently an- South Indian Bank ap- dents opening a bank account from the
nounced a Sustainability Bond Frame- points P R Seshadri as MD requirement of submitting PAN.
work, which seeks to finance and refi- Gujarat International Finance Tec-City
nance new or existing eligible green and CEO (GIFT)-IFSC is being promoted as a tax
and social projects. South Indian Bank has appointed P R neutral enclave for the financial sector.
Seshadri as its MD & CEO. He has suc-
Eligible social projects include afford- Nangia Andersen LLP Partner - Finan-
ceeded Murali Ramakrishnan who
able basic infrastructure, access to cial Services Sunil Gidwani said this re-
served a successful tenure.
essential services, affordable housing, laxation will make it easy for foreign
employment generation, food security, With nearly 25 years of banking expe- companies, NRIs and other nonresi-
socioeconomic advancement, and rience spanning domestic and interna- dents to open a bank account with an
empowerment. tional markets, Seshadri has held senior IFSC bank.

BANKING FINANCE | NOVEMBER | 2023 | 5