Valuation or funds? Key question for pvt banks in a tug of war for capital

Replicating success in terms of investor demand and premium pricing may be tough as lenders prepare for mega fundraising

Rarely in Axis Bank’s history has it sought to raise equity capital in two consecutive years. After raising Rs 12,500 crore in September 2019, its board approved of another Rs 15,000 crore of equity capital raise for FY21. News reports suggest peers, such as HDFC Bank and ICICI Bank, too, may be readying for a similar exercise.
 

Plans to garner equity succeeds the recent decision to raise debt funds of Rs 25,000 - 50,000 crore by the three banks. The rush to raise money comes at a time when most banks — both private and government-owned — have done well