Axis Bank to raise USD 4.6 bln amid COVID-19

Friday 1 May 2020 11:34 CET | News

India-based Axis Bank has announced it is planning to raise USD 4.6 billion as it reported a loss stemming from additional loan provisions related to the COVID-19 crisis.

According to Verdict, the lender made total loan provisions of USD 1.02 billion for the quarter which ended on March 31, 2020, a 185% jump from the 2019 quarter. Just the pandemic exposures accounted for USD 396 million of the total loan provisions.

By seeking additional funds, Axis Bank follows in the footsteps of peers including Kotak Mahindra Bank which announced its plans to issue USD 1 billion of new shares to boost its capital.

The central government’s lockdown due to COVID-19 is affecting business activity while regulators urge the banks to freeze loan repayments for three months and provide additional provisions as needed.

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Keywords: Axis Bank, COVID-19, coronavirus, loans, lender, Kotak Mahindra Bank, banks
Categories: Banking & Fintech
Countries: India
This article is part of category

Banking & Fintech