Axis Bank gains as board to mull fund raising

Axis Bank rose 1.09% to Rs 924.70 after the bank announced that it plans to raise upto Rs 12,000 crore through bonds.

The private lender is proposing 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 crore. The offer comprises of a base issue of up to 1,000 bonds aggregating to Rs 1,000 crore with a green shoe option to retain oversubscription of up to 11,000 bonds aggregating to Rs 11,000 crore.

Earlier in April 2022, the bank's board approved to borrow/raise funds in Indian/foreign currency by issue of debt Instruments including but not limited to long term bonds, non-convertible debentures, perpetual debt instruments, AT-1 bonds, infrastructure bonds and Tier II capital bonds or such other debt securities as may be permitted under RBI guidelines from time to time up to an amount of Rs 35,000 crore.

Axis Bank is the third largest private sector bank in India. The bank's standalone net profit rose 70.1% to Rs 5,329.77 crore on 20.1% rise in total income to Rs 24,180.08 crore in Q2 FY23 over Q2 FY22.

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