The BOD (Board of Directors) of one of India’s most prominent banks is all set to meet on the 10th of November to discuss the possibility of raising equity. The board of Axis Bank will meet in Mumbai to contemplate whether raising equity is a feasible option for the bank presently and when it would be a suitable time to do so.
The bank’s share currently costs Rs.527 each on Bombay Stock Exchange (BSE). Currently, Life Insurance Corporation (LIC) and other state owned insurance companies own around 30% of the company, while other foreign investors own roughly 50% stake in the company.
Axis Bank had also stated that they are open to explore various methods to raising funds and capital. The capital position of Axis Bank is currently healthy despite the fact that the bank’s provisions were high in the second quarter of this financial year. The capital adequacy ratio (CAR) of the bank stood strong at 16.32%. The common equity tier – 1 (CET – 1) of 10.95% as of the end of September 2017.
The bank wishes to be at least 1.5% above standard requirement in terms of the common equity tier (CET). The regulatory requirement for the CET – 1 is around 8.8%.