Indian private-sector lender Axis Bank is reportedly planning to raise at least $1.3bn through a share sale to support growth.
Currently, the bank is talking with potential advisers on the move, reported Bloomberg citing sources familiar with the matter.
Go deeper with GlobalData
The deal is not yet finalised and may be delayed. According to sources, the deal may not proceed as well.
However, if the strategy moves forward, Axis Bank will seek board approval as early as next month.
The deal is expected to help the lender to strengthen capital buffers against potential risks. Additionally, it will help the bank in expanding its lending capacity.
According to March 2019 data, Axis Bank’s overall capital adequacy ratio was lower than its domestic private-sector rivals.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn 2017, the bank raised around $1.78bn through a private placement of shares from Bain Capital and other investors.
According to the bank website, Axis Bank is the third largest private sector bank in India. It offers retail banking, corporate banking, and investment banking among other services.
In India, it has 4,050 domestic branches including extension counters, and 11,801 ATMs and 4,917 cash recyclers.
It also operates international branches at Singapore, Hong Kong, Dubai, Colombo and Shanghai. The lender also maintains representative offices at Dhaka, Dubai, Abu Dhabi and an overseas subsidiary at London.
Last year, Axis Bank announced plans to open around 350-400 branches to bolster its existing network.
