Private sector Axis Bank
will raise Rs 5,000 crore by issuing bonds on a private placement basis.
"The board of directors of the bank today approved the allotment of 50,000 unsecured, redeemable non-convertible subordinated debentures, Basel
III compliant tier II debentures aggregating to Rs 5,000 crore on a private placement basis," Axis Bank
said in a regulatory filing.
According to Basel
III Capital Regulations, banks
have to improve and strengthen their capital planning processes so as to be ready to mitigate any concerns that may arise if there are potential stresses on asset quality and consequential impact on performance and profitability of banks.
in India have been implementing Basel
III norms in phases since April 1, 2013 and are set to be fully compliant by March 2019, little behind globally accepted deadline of January 1, 2019.
said it will list the debentures in the wholesale debt market segment of BSE
Bonds with AAA
rating reflect an exceptional degree of credit-worthiness on the basis that the issuer can easily meet its financial commitments.