New Delhi: Private sector lender Axis Bank on Saturday said its board has approved raising up to ₹18,000 crore through an issue of equity shares, depository receipts or convertible securities.
The Board of Directors of the bank approved the proposal in this regard in the meeting held on Saturday, the bank said in a regulatory filing. "The Board... has approved raising of funds aggregating up to ₹18,000 crore."
The bank, however, did not disclose when it will raise the funds. Earlier, it had said it will mobilise resources at an "appropriate time".
In the filing, Axis Bank said the fund will be raised through the issue of equity shares/depository receipts and/or any other instruments or securities representing either equity shares and/or convertible securities linked to equity shares, including through Qualified Institutions Placement (QIP)/ American Depository Receipts (ADRs)/ Global Depository Receipts (GDRs) programme, preferential allotment or such other permissible mode or combinations as may be considered appropriate.
The fund will be raised subject to shareholder's approval to the proposal through the postal ballot process, it added. The bank is one of the worst-affected private lenders after the Reserve Bank's asset quality review, which led to a huge increase in bad loans over the past three years.
The bank's provisioning for bad loans reduced to ₹2,711 crore in the fourth quarter of 2018-19, from ₹7,179 crore in the corresponding period last fiscal, according to regulatory filings.
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