Companies & Sectors
Axis Bank to raise over Rs6,000 crore via QIP, GDR route

The board of Axis Bank approved to raise Tier-I capital of the lender through GDRs or QIP issue and preferential issue to promoters of the bank

New Delhi: Axis Bank said it proposes to raise funds by offering 4.58 crore shares by various means, including qualified institutional placement (QIP) or global depository receipt (GDR), reports PTI.

 

The board of the private sector lender has also approved to increase the authorised share capital of the bank from Rs500 crore to Rs850 crore, Axis Bank said in a BSE filing.

 

The bank would be able to raise about Rs6,228 crore at Monday's closing price.

 

The board approved to raise Tier-I capital of the bank by issue of equity shares not exceeding 4.58 crore equity shares through GDRs or QIP issue and preferential issue to promoters of the bank.

 

The decision will be subject to approval of shareholders, Reserve Bank of India and other regulatory authorities as may be required, it added.

 

Earlier this month, Axis Bank raised $20 million (about Rs108 crore) from overseas bonds.

 

The fund was raised under the medium-term note (MTN) programme through its Hong Kong branch.

 

Meanwhile, the bank launches e-Gift Card which offers customers an alternate channel through which they can buy a gift card for their dear ones.

 

Domestic customers can purchase these online e-Gift Cards using their credit or debit card issued by their respective bank, the bank said in a statement.

 

This card is an online version of the physical plastic gift card can be sent via email or SMS to recipient, who can then use it to purchase anything online across categories like apparels, airline tickets, books, etc.

 

The validity of the card is one year from the date of issuance.

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Allahabad Bank cuts retail term deposit rate to 9%

Allahabad Bank cut its domestic retail term deposit rate to 9% for maturity period of one year to less than two years

Mumbai: State-run Allahabad Bank has cut its domestic retail term deposit rate by 0.15% to 9%, reports PTI.

 

"...the Bank has decided to revise the interest rate downward by 0.15% per annum i.e. from existing 9.15% to 9% on domestic retail term deposits scheme with maturity period of one year to less than two years," it said in a BSE filing.

 

The new rates would be applicable from 18 December 2012, it said.

 

Earlier in October, Oriental Bank of Commerce and Bank of India had lowered term deposit rates for select maturities.

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RBI allow developers, housing finance companies to raise $1 billion through ECB

The funds raised through ECBs could be used either for developing low cost housing projects or for providing loans up to Rs25 lakh to individuals for buying home with a price tag of Rs30 lakh or less, says the central bank

Mumbai: The Reserve Bank of India (RBI) has allowed real estate developers and housing finance companies to raise up to $1 billion through external commercial borrowings (ECBs) in the current fiscal to promote low cost housing projects, reports PTI.

 

The funds raised through ECBs could be used either for developing low cost housing projects or for providing loans up to Rs25 lakh to individuals for buying units with a price tag of Rs30 lakhs or less.

 

"It has been decided to allow ECB for low cost affordable housing projects as a permissible end-use, under the approval route. ECB can be availed of by developers/builders," RBI said in a circular.

 

Besides developers, the central bank said housing finance companies (HFCs)/National Housing Bank (NHB) can also raise ECBs for financing prospective owners of low cost, affordable housing units.

 

Slum rehabilitation projects, the circular said will also be eligible for raising ECBs to fund affordable housing projects.

 

ECBs are considered attractive as cost of raising the loan overseas is lower than that of domestic borrowings.

 

Besides, they provide an additional avenue to access large amounts of funds from global financial markets.

 

As per the guidelines, developers/builders with a minimum track record of five years in undertaking residential project will be eligible to raise ECBs.

 

With regard to HFCs, the circular said that only those companies with a minimum paid up capital of Rs50 crore and minimum net owned fund of Rs300 crore would be eligible to raise ECBs.

 

It further said the maximum loan amount for individual buyers should be capped at Rs25 lakh subject to the condition that the cost of the individual housing unit would not Rs30 lakh.

 

On the limit of ECB for promoting low cost affordable projects, RBI said it would be $1 billion for 2012-13 and would be reviewed annually.

 

The initiative follows the announcement made by the government to promote low cost affordable housing in the Budget for 2012-13, it added.

 

The decision to permit developers and HFCs to raise ECBs was taken by the High Level Committee on External Commercial Borrowings in August to reduce the shortage of housing for low income groups in major cities and towns.

 

The Confederation of Real Estate Developers' Association of India (CREDAI), an apex body of the organised real estate developers, had estimated the funding gap in housing sector at around $70 billion in the next five years.

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