AU Small Finance Bank Ltd has announced plans to raise ₹1,500 crore via the issuance of unsecured, rated, listed, redeemable, subordinated, non-convertible Lower Tier II Bonds, classified as Tier II capital. This move aims to strengthen the bank's capital base and support its future growth. The bond issuance is subject to regulatory approvals and market conditions. With this fundraising effort, AU Small Finance Bank is poised to enhance its financial stability and expand its operations, leveraging its position in the Indian banking sector. Key terms like 'Tier II Bonds' and 'bank capital' are crucial in this context.