Axis Bank to sell debentures to fund growth
The bank's gross non-performing assets (NPAs) or bad loans rose significantly to 5.04 per cent of the gross advances as of March.
New Delhi: Private sector Axis Bank today said it proposes to raise Rs 5,000 crore from debentures to fund business growth.
The bank proposes to "raise funds by issuing unsecured Redeemable Non-Convertible Subordinated Debentures, Basel- III Compliant Tier 2 Debentures (Series 27) of the face value of Rs 10 lakh each for cash at par aggregating to Rs 5,000 crore, Axis Bank said in a regulatory filing on stock exchanges. For the fourth quarter ended March 2017, Axis Bank reported 43 per cent decline in net profit to Rs 1,225.10 crore on higher provisioning for bad loans, which rose sharply.
The bank had posted a net profit of Rs 2,154.28 crore for the January-March quarter of the previous fiscal, 2015-16. Its total income increased to Rs 14,181.31 crore in the fourth quarter of 2016-17 from Rs 13,592.97 crore in the year-ago period.
The bank's gross non-performing assets (NPAs) or bad loans rose significantly to 5.04 per cent of the gross advances as of March this year, as against 1.67 per cent a year earlier. Net NPAs were 2.11 per cent of the net advances during the quarter, as against 0.70 per cent.