Axis Bank on Monday said it proposes to raise ₹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 ₹10 lakh each for cash at par aggregating to ₹5,000 crore, Axis Bank said in a regulatory filing on stock exchanges.
For the fourth quarter ended March 2017, Axis Bank reported a 43 per cent decline in net profit to ₹1,225 crore on higher provisioning for bad loans, which rose sharply.
Its total income increased to ₹14,181 crore in Q4 of FY17 from ₹13,593 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 (0.70 per cent).