Private sector lender Axis Bank will be raising funds worth Rs. 55,000 crore by way of a mix of debt and equity.
Of the total approved plan, it will raise around Rs 35,000 crore through issue of various debt instruments, including long term bonds, masala bonds, sustainable, optionally/compulsorily convertible debentures among others, a bank source said.
The remaining Rs. 20,000 crore will be by issue of equity shares or related securities, he added.
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors, told Bizz Buzz, “After acquiring Citi bank retail business, Axis Bank posted a net profit of Rs. 7,130 crore for the fourth quarter of the fiscal after posting a loss of Rs. 5,762 crore in the same period last year.” The NII of the bank increased 11.47 per cent to Rs. 13,089 crore from Rs. 11,742 crore last year. The gross and net NPA also improved compared to the previous year. To strengthen the overall financial position, the bank’s board has approved fundraising, involving issuance of debt instruments worth Rs. 3,5000 crore and equity worth Rs. 20,000 crore, he said.