IndusInd Bank Grants Approval to Raise of Rs 20 Million Crore

IndusInd Bank on Monday said its board of directors has endorsed an idea to raise as much as 20 million in debt through an issuer basis to finance its growth. The capital adequacy ratio for the bank was 18.42 percent as of last month's March 31st, the tier-I capital at 16.80 percent, and tier II capital being 1.62 percent as a percentage of the 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," IndusInd Bank stated in an exchange report.

The plan for fund-raising is subject to approval by its shareholders. The bank, on July 12, stated that it will consider the possibility of raising funds via debt. The bank will disclose its earnings for the initial quarter of the financial year next Wednesday. In July the bank approved plans to raise around 30,00 crore via either debt or equity.

In addition, the bank has approved the appointment of Akila Krishnakumar, an outside director of the board, and plans the Annual General Meeting on 19 August. Also, the bank approved the appointment of MSKA & Associates and MP Chitale & Co as joint auditors for statutory purposes for two years.