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Axis Bank board gives nod to Rs 15,000 crore fundraising plan

The plan is "subject to the approval of the Shareholders at the ensuing 26th Annual General Meeting of the Bank, in relation to the above fundraising proposal," the bank said

twitter-logoBusinessToday.In | July 2, 2020 | Updated 12:02 IST
Axis Bank board gives nod to Rs 15,000 crore fundraising plan
Axis Bank

The Axis Bank board on Thursday approved the proposal to raise up to Rs 15,000 crore to boost capital buffers amid coronavirus pandemic. Fundraising will be done through issue of equity shares or depository receipts or any other instruments or securities representing convertible securities linked to equity shares, Axis Bank said in an exchange filing. The instruments may also include qualified institutional placement, American depository receipts, global depository receipts programme, preferential allotment, or any other means necessary, it added.

The plan is "subject to the approval of the Shareholders at the ensuing 26th Annual General Meeting of the Bank, in relation to the above fundraising proposal," the bank said. Shares of Axis Bank were trading at Rs 423.20, down 10.05 points, or 2.32 per cent on NSE at the time of reporting.

Meanwhile, in June, credit rating agency S&P Global Ratings (S&P) downgraded the Foreign Currency Ratings of the bank saying, "We lowered our ratings on Axis to reflect our expectation that heightened economic risks facing India's banking system will affect the bank's asset quality and financial performance."

Earlier this week, HDFC Bank said that it plans to raise up to Rs 50,000 crore via unsecured perpetual debt instruments, Tier II Capital Bonds and Long Term Bonds in the domestic market. The fundraise would be done in one or more tranches, HDFC Bank said in its annual general meeting (AGM) notice. The bank said it will consider "to Issue Unsecured Perpetual Debt Instruments(part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing) on a private placement basis and in this regard to consider and, if thought fit, to pass the following resolution, as a special resolution."

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