Axis Bank approves proposal relating raising of funds upto Rs 15,000 crore

The board of directors at private sector lender Axis Bank on Thursday approved a proposal relating to raising of funds up to Rs 15,000 crore to beef up capital buffers.

This will be done through issue of equity shares or depository receipts or any other instruments or securities representing either equity shares and convertible securities linked to equity shares.

It will include through qualified institutions placement or American depository receipts or global depository receipts programme, preferential allotment or such other permissible mode or combinations.

The proposal is subject to the approval of shareholders at 26th annual general meeting of the bank to be held through video conferencing on July 31, the bank said in a statement.

The development comes amid rapid deterioration in the operating environment for banks in India following the coronavirus pandemic and measures to contain its spread.

Rating agency Fitch has lowered the operating environment score for Indian banks to BB from BB-plus while keeping it on a negative outlook due to the uncertainty surrounding the severity and duration of the pandemic and the associated effects on India's banks from restrictions on economic activity.

This is despite relief measures implemented by the authorities to support the economy and protect borrowers, which indirectly benefit the banks. 

-ANI