Axis Bank plans to raise Rs5,000 crore via debentures
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New Delhi: Private sector Axis Bank on Monday said it proposes to raise Rs5,000 crore from debentures to fund business growth. The bank proposes to “raise funds by issuing unsecured Redeemable Non-Convertible Subordinated Debentures, Basel- III Compliant Tier 2 Debentures (Series 27) of the face value of Rs10 lakh each for cash at par aggregating to Rs5,000 crore, Axis Bank said in a regulatory filing on stock exchanges.
For the fourth quarter ended March 2017, Axis Bank reported 43% decline in net profit to Rs1,225.10 crore on higher provisioning for bad loans, which rose sharply. The bank had posted a net profit of Rs2,154.28 crore for the January-March quarter of the previous fiscal, 2015-16. Its total income increased to Rs14,181.31 crore in the fourth quarter of 2016-17 from Rs13,592.97 crore in the year-ago period.
The bank’s gross non-performing assets (NPAs) or bad loans rose significantly to 5.04% of the gross advances as of March this year, as against 1.67% a year earlier. Net NPAs were 2.11% of the net advances during the quarter, as against 0.70%.