New Delhi: Private sector lender IDFC Bank on Wednesday said it will raise up to Rs5,000 crore by issuing bonds in next 12 months in one or more tranches from the domestic or overseas markets.
The board of the bank had yesterday passed a resolution for borrowing or raising long term funds by issue of redeemable non-convertible debentures or other debt instruments.
The instruments through which the bank has been permitted to raise capital include perpetual debt instruments (part of additional tier I capital), tier II capital bonds and long term bonds (financing of infrastructure and affordable housing), on private placement basis, up to an amount not exceeding Rs5,000 crore, the bank said in a regulatory filing.
The proposed capital will be raised in one or more tranches, in domestic/ overseas market, over a period of 1 year, within the overall borrowing limit of Rs1.5 trillion as approved by the shareholders of the bank, it added.
Additionally, the board has approved re-appointment of Rajiv B Lall as MD and CEO of the bank for a period of two years, subject to the approval of shareholders and the RBI. It has also approved re-appointment of Veena Mankar, Abhijit Sen, Ajay Sondhi and Rajan Anandan as independent directors.
Yesterday, the bank had reported a fall of over 76% in its standalone net profit to Rs41.93 crore for the March quarter on rise in bad loans and higher provisioning against a profit of Rs175.95 crore in the same quarter of previous fiscal ended March 2017.
IDFC Bank shares closed 0.84% lower at Rs47.40 on BSE today.