The equity may be raised through private placement or qualified institutions placement (QIP) or preferential allotment or through a combination of these instruments, the bank said in a regulatory filing to stock exchanges.
The borrowing can be done in one or more tranches, by issuing debt instruments such as bonds and non-convertible debentures, the bank said.
Jaipur-based AU is the largest small finance bank with gross advances of Rs 73,999 crore and Rs 87,182 crore of deposits at the end of March. Its advances grew 25% year-on-year growth while deposit rose 26%.
On Thursday, the bank’s board has also fixed the record date as July 12 for The bank’s board has recommended a dividend of Re 1 per equity share of face value of Rs 10 for FY24 for determining the members who will be eligible for final dividend. The board earlier recommended a dividend of Re 1 per equity share of face value of Rs 10 for FY24, subject to shareholders approval.
In another development, microfinance lender Satin Creditcare Network has decided to raise Rs 50 crore through private placement of bonds by paying 10.5% per year payable monthly.
The bonds will be issued on July 4 for 30 months, the lender said.