Private sector lender IndusInd Bank plans to raise up to Rs 30,000 crore through debt and equity to support business growth and also meet regulatory norms for capital.
Its board gave approval to the plan for raising funds. It will also seek shareholders’ nod for it. However, it did not specify a timeline for raising debt and equity capital.
IndusInd Bank in filing with BSE said it will raise funds through debt securities or equity instruments or convertible debt securities in any permitted mode including Qualified Institutions Placement. The fundraising will be subject to shareholders, regulatory, and statutory approvals.
In September 2020, the bank had raised Rs 3,288 crore through preferential allotment of shares to the promoter group and select investors. Its capital adequacy stood at 17.38 percent at the end of March 2021.
The bank will also increase authorised capital from Rs 857 crore (875 million shares of Rs 10 each) to Rs 1,000 crore (1,000 million shares of Rs 10 each). It will seek shareholders approval at the Annual general meeting for this. AGM is slated for August 26, 2021.
The board also approved the appointment of Jayant Vasudeo Deshmukh as Additional Director’ in the category of ‘Non-Executive, Independent-Agriculture and Rural Economy Director.
Its board cleared proposal to appoint two Chartered Accountancy firms — Haribhakti & Co. LLP and M P Chitale & Co. — as joint statutory auditors for the bank.