IndusInd Bank on Monday said its board has approved a proposal to raise up to Rs 20,000 crore in debt on a private placement basis to fund its business growth. The capital adequacy ratio of the bank stood at 18.42% as on March 31, with tier-I capital being at 16.80% and tier-II capital at 1.62% as percentage of its risk-weighted assets.
“The board of directors of IndusInd Bank approved raising funds through debt securities in any permitted mode on a private placement basis as may be decided, for an aggregate amount not exceeding Rs 20,000 crore or its equivalent amount in such foreign currencies,” the lender said in an exchange filing.
The fund-raising plan is subject to the approval of its shareholders. The bank on July 12 said it would consider raising funds through debt. The bank is scheduled to detail its earnings for the first quarter of the current financial year on Wednesday. Last July, the bank had approved plans to raise Rs 30,000 crore through equity or debt.
Separately, the bank approved re-appointment of Akila Krishnakumar as an independent director on the board, and has scheduled to hold its 28th annual general meeting on August 19. The bank also approved appointment of MSKA & Associates and MP Chitale & Co as joint statutory auditors for two years.