Mumbai: Axis Bank, India’s third largest private sector lender proposes to raise Rs3,500 crore through non-convertible debentures (NCDs) route, it said in a notification issued on stock exchange.

“The board of directors of the bank will consider the proposal to issue and allot the above securities through circular resolution. On receipt of the approval of the board of directors, the company will intimate to the stock exchange the date of passing of the circular resolution and other details of the said issue," the notification said.

Even ICICI Bank had announced to raise Rs25,000 crore by private placement through various channels including NCDs.

With bond yields falling in line with policy rate changes, raising funds via NCDs has become a cheaper source. According to Prime Database data, of the total funds raised in first half of fiscal year 2017, Rs2.73 trillion was via NCDs (on a private placement basis). In percentage terms, this comes to nearly 75% of the total funds raised by Indian companies.

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