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Axis Bank to raise funds via Tier II bonds worth 12,000 cr

Suuti sold 61.43 lakh shares of Axis Bank between 2 and 4 December, which fetched the government  ₹374.21 crore, stock exchange filings show. (Bloomberg)Premium
Suuti sold 61.43 lakh shares of Axis Bank between 2 and 4 December, which fetched the government 374.21 crore, stock exchange filings show. (Bloomberg)

  • In April, Axis Bank had said that its board had approved capital raise proposal up to 35,000 crore by issuing various debt instruments in Indian or foreign currency in domestic/overseas markets in one or more tranches.

Private lender Axis Bank on Wednesday announced it will raise funds by Tier II bonds aggregating to a total of 12,000 crore.

The offer comprises of a base issue of up to 1,000 Bonds aggregating to 1,000 crores with a green shoe option to retain oversubscription of up to 11,000 Bonds aggregating to 11,000 crores, said Axis Bank in its regulatory filing.

"The Bank proposes to raise funds by issuing unsecured, rated, listed, subordinated, taxable, non-convertible, Basel III compliant Tier II bonds aggregating to total issue size up to Rs. 12,000 Crores. The offer comprises of a base issue of up to 1,000 Bonds aggregating to Rs. 1,000 Crores with a green shoe option to retain oversubscription of up to 11,000 Bonds aggregating to Rs. 11,000 Crores," the bank said in its regulatory filing.

In April, Axis Bank had said that its board had approved capital raise proposal up to 35,000 crore by issuing various debt instruments in Indian or foreign currency in domestic/overseas markets in one or more tranches.

Earlier this month, State Bank of India, country’s largest lender, had sold 10-year infrastructure bonds worth 10,000 crore at a coupon of 7.51 per cent.

Last month, the government sold its entire 1.55% stake, representing 46.5 million shares, in Axis Bank held through SUUTI.

The floor price for the sale was fixed at 830.63 per equity share.

Axis Bank reported a consolidated net profit of 5,330 crore, up 70 per cent for the quarter ended September 2022, as against 3,133 crore in the year-ago quarter.

The lender's net interest income (NII) grew 31% year-on-year to 10,360 crore from 7,901 crore in the last year quarter.

The bank's asset quality improved further during the reporting quarter. The gross non-performing asset ratio dropped to 2.5% as on 30 September, 2022, from 2.76% a quarter ago and 3.53% a year ago.

On BSE, the company's scrip ended 0.93 per cent higher at 913.

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