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    Axis Bank board to meet on July 2 to explore fundraising

    Synopsis

    The private lender did not specify the amount it was looking to raise.

    The ratings agency downgraded Axis Bank’s issuer credit rating to BB+/stable/B from BBB-/negative/A-3 earlier.

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    Mumbai: Axis Bank said on Monday its board will meet on Thursday to explore raising funds through shares or depository receipts.

    The private lender did not specify the amount it was looking to raise, but said the board will meet to explore the option of raising funds by issue of equity shares/ depository receipts or any other instruments or securities representing either equity shares and/or convertible securities linked to equity shares including through qualified institutions placement (QIP)/American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) program, preferential allotment.

    Also, the bank said it has approved the appointment of TC Suseel Kumar, managing director, Life Insurance Corporation of India, promoter of the bank, as the additional non-executive (nominee) director of the bank from July 1.

    Separately, S&P Global Ratings on Friday said it has lowered its ratings on Axis Bank to junk, reflecting the ratings agency’s view that economic risks have increased for banks operating in India.

    The ratings agency downgraded Axis Bank’s issuer credit rating to BB+/stable/B from BBB-/negative/A-3 earlier. It also downgraded the bank’s Dubai International Financial Centre branch, GIFT city branch and Hong Kong branches’ ratings to BB+ from BBB- earlier.

    When a bond's rating drops into the double-B category, it falls into the junk bond territory.
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