India's third largest private sector bank Axis Bank announced plans to raise a whopping Rs.3, 000 crore through an issue of debt in the local and/or overseas markets in one or more tranches to fund its organic growth. It plans to raise Rs.500 crore by way of Tier I capital and the balance through Tier II capital. Upon completion of the capital raising, the bank's capital adequacy ratio, which stood fairly strong at 13.69 percent at the end of the March quarter, will rise to around 15 percent.
Tier I capital consist largely of shareholders' equity and measure a bank's financial strength. It could consist of common stock, preferred stock that is irredeemable and non-cumulative, and retained earnings. On the other hand, Tier II capital describes the capital adequacy of a bank. In the Basel I accord, these are categorized as undisclosed reserves, revaluation reserves, general provisions, hybrid instruments and subordinated term debt.
In a significant event, Smt. Shikha Sharma, the erstwhile managing director and founder CEO of ICICI Prudential, took charge as the new MD and CEO of Axis Bank after a formal approval of her appointment at the 15th annual general meeting in Ahmedabad. The shareholders also approved alteration of the bank's Articles of Association to pave the way for the separation of the post of Chairman and CEO into a non-executive Chairman and a Managing Director. The split would be effective from June 1,2009 instead of August 1,2009, Axis Bank said in a statement.
In a career spanning 29 years, Shikha Sharma has had a wide exposure across the entire spectrum of financial services and has held several leadership positions across various market leading businesses. She is 50 years of age and has done her MA and post-graduate diploma in software technology from the Indian Institute of Management, Ahmedabad. She joined ICICI group in 1980 and was instrumental in setting up I-Sec, a joint venture between ICICI and JP Morgan. It is to be noted that Axis Bank's outgoing chairman PJ Nayak dissented against the board's decision to appoint Sharma as the managing director and CEO.
"I am honored that the board has entrusted me with the responsibility of leading Axis Bank and am delighted at the opportunity. Dr Nayak has left behind a bank, which is a very well respected, with a strong lineage and an exciting future." Sharma said at the AGM.
R H Patil, Chairman of the Nomination Committee said, " We are delighted to have Sharma join Axis Bank as the managing director and CEO. She brings considerable knowledge of the corporate and financial sectors, which would benefit the bank. The board is confident that under her leadership, the bank will achieve even greater heights."
On the BSE, Axis Bank was last trading at Rs.714.35, down 3.76% from its previous close. Totally, 10.89 lakh shares traded thus far during the day compared to a 2-week daily average volume of 8.57 lakh shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.