India Ratings and Research (Ind-Ra) has assigned IDBI Bank’s (IDBI) proposed Rs 30 billion Basel III compliant Omni Tier 2 Bond 2015-16 Series I an ''IND AA+'' rating with stable outlook.

IDBI's Basel III Tier 2 instrument is redeemable after 10/15 years. The claims of bondholders are senior to the claims of investors in Tier 1 capital, but subordinate to the claims of all depositors and general creditors of the bank (other than subordinated debt qualifying as Tier 2 Capital).

The bonds are subject to loss absorbency features, and at the option of the Reserve Bank of India (RBI) can be written off upon occurrence of a trigger event called the point of non-viability. The trigger will be determined by RBI.