Private lender IndusInd Bank on Friday said that the board of directors of the bank had approved fund raise of more than Rs 30,000 crore bank. The lender has taken a board resolution for an equity fund raising of Rs 10,000 crores. The bank’s board also approved fund raise of Rs 20,000 crore through debt securities, the bank said in an exchange filing.
The bank said that the equity capital raise is subject to further stakeholder approval and could be raised through American
Depository Receipts, Global Depository Receipts, Qualified Institutional Placement among other routes.
“Augmentation of capital through further issue or placement of securities including American
Depository Receipts, Global Depository Receipts, Qualified Institutional Placement, etc., as may be decided, for an aggregate amount of Rs. 10,000 crores or its equivalent amount in permitted foreign currencies, subject to approval of the Members of the Bank and receipt of regulatory and statutory approvals, as applicable,” the bank said in the filing.
The bank also took board approval to raise money via the debt route.
“Raising of funds through debt securities in any permitted mode on a private placement basis
as may be decided, for an aggregate amount of Rs. 20,000 crores or its equivalent amount in permitted foreign currencies,” the bank said.
Banks are preparing for collective equity fundraise of nearly Rs 40,000 crore in the second half of this financial year, showed data compiled by ET. They are expected to use the fresh capital to reinforce balance sheets, mainly to support expansion.
The boards of state-run Punjab National Bank (PNB) and Bank of Maharashtra have approved proposals to raise Rs 7,500 crore each. Union Bank of India said it may opt for a qualified institutional placement (QIP) as well as other equity routes for raising Rs 6,000 crore.
Analysts say banks are aiming to shore up balance sheets and meet credit growth requirements, as mandated by the Reserve Bank of India (RBI).
Others that have taken enabling resolutions for raising capital include Central Bank of India and AU Small Finance Bank, both of which are planning to garner Rs 5,000 crore each through QIPs. AU Small Finance Bank is also planning to raise another Rs 6,000 crore through debt financing.
Meanwhile, private lender RBL Bank said it could raise Rs 3,500 crore. This will be RBL’s first share issue via institutional placement since 2021, when it saw a sudden change in management. The lender has plans to raise another Rs 3,000 crore through an issuance of debt securities via private placement.
