Private sector AU Small Finance Bank said on Wednesday that its board had approved a proposal to raise a fund raising scheme of Rs 3,000 crore.
The Jaipur-based bank can opt for private placement or placement in Qualified Institutions (QIPs) or preferential allocation or a combination thereof.
In addition, the board also approved the borrowing or raising of funds in an amount not exceeding Rs 6,000 crore in one or more tranches, through the issuance of debt securities, including but not limited to , bonds and non-convertible debentures.
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The bank’s board approved the proposal at its July 20 meeting, the bank said in a statement.
AU Small Finance Bank reported a 32% year-on-year increase in first quarter net profit to Rs 268 crore. It had reported a net profit of Rs 203 crore in the prior year quarter.
The bank remains well capitalized with a total CRAR (Capital to Risk Weighted Assets Ratio) at 19.4% against the minimum requirement of 15%. Adding interim earnings, the CRAR would be 20.0%.
The Tier I capital ratio of 18.4% against the minimum requirement of 7.5%. Adding interim earnings, the Level I capital adequacy would be 19.1%.
Shares of AU Small Finance Bank closed at Rs 576.00, up Rs 10.10, or 1.78% on BSE.