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The Board of Directors of AU Small Finance Bank on Wednesday approved raising of funds aggregating up to ₹3,000 crore by issue of equity shares.
Further, the Board also approved borrowing/raising of funds up to ₹6,000 crore by issue of debt instruments in one or more tranches.
The equity fund raising will be through private placement or qualified institutions placement (QIP) or preferential allotment or through a combination thereof or any other alternative mode, as may be considered appropriate, the bank said in a regulatory filing.
The aforementioned fund raising proposal is subject to approval of the shareholders and other statutory approvals and requirements, as applicable.
The debt instruments, the bank proposes to issue, will include Bonds and Non-Convertible Debentures or such other debt securities as may be permitted by the RBI. This issuance is subject to necessary approvals and requirements, as applicable.
Bank adequately capitalised
The bank, in a statement, said it remains well-capitalised with total capital to risk-weighted assets ratio (CRAR) at 19.4 per cent as at June-end 2022 against minimum requirement of 15 per cent. Adding interim profits, CRAR would be 20 per cent, it added.
Within total CRAR, the tier-I capital ratio was at 18.4 per cent against minimum requirement of 7.5 per cent. Adding the interim profits, tier-I capital adequacy would be 19.1 per cent, per the bank.
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