Axis Bank to raise Rs 2,000-cr via debentures

Private sector Axis Bank on May 25 said it proposes to raise Rs 2,000 crore by way of issuing Basel-III compliant debentures.

"The Bank proposes to raise funds by issuing unsecured redeemable non-convertible subordinated debenture (Basel-III compliant tier II debenture issue) amounting to Rs 2,000 crore plus green shoe option", it said in a regulatory filing.

The Board of Directors of the bank will consider the proposal to issue and allot the above securities through circular resolution, it added.

The Basel-III norms have been introduced by the RBI in the Indian banking system since 2013 in a phased manner, with an aim to improve and strengthen regulation, supervision and risk management within the banking sector.

According to a Fitch Ratings report last year, banks in India will need about USD 140 billion to ensure full compliance with the Basel III norms by 2018-19.

Axis Bank stock closed 2.67 percent higher at Rs 502.35 apiece on BSE.