Business · India Bureau
Equitas Small Finance Bank Clears Rs 500 Crore NCD Issuance
Equitas SFB's board has approved plans to raise up to Rs 500 crore through non-convertible debentures, signalling the lender's capital expansion strategy. The approval comes as the bank's stock gains momentum in the market.
LSN India ·
Equitas Small Finance Bank Limited has received board approval to mobilise funds up to Rs 500 crore through the issuance of non-convertible debentures (NCDs), according to regulatory filings. The capital-raising initiative underscores the bank's efforts to strengthen its balance sheet and support lending operations as it expands its retail and small business lending portfolio across Indian markets.
Market sentiment around the lender remained positive on Wednesday, with its shares trading 1.04% higher at Rs 72.20 apiece, outpacing the broader Nifty index's 0.48% gain. The stock has demonstrated robust performance metrics, advancing 14.48% since the beginning of the financial year and registering a 28.52% return over the 12-month period, reflecting investor confidence in the institution's growth trajectory.
The NCD issuance represents a conventional capital-raising instrument for financial institutions seeking to diversify their liability structure while accessing fixed-income investor segments. For Equitas SFB, this move aligns with the bank's expansion ambitions amid rising credit demand across underserved segments in South and Southeast Asian markets.
The lender, which obtained its small finance bank licence in 2015, has been focusing on inclusive banking through micro-credit and retail lending. The approval for the Rs 500 crore NCD programme provides the institution with additional financial flexibility to deploy capital towards its strategic objectives and regulatory capital requirements.