Equitas Small Finance Bank Limited has informed the Exchanges regarding outcome of Board meeting held on July 21, 2025.
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The board of Equitas Small Finance Bank, at its meeting on July 21, 2025, approved raising capital through the issuance of subordinated, unsecured, redeemable, rated and listed Non-Convertible Debentures (NCDs) on a private placement basis. The total issue size is up to Rs 500 crore, comprising up to 50,000 NCDs with a face value of Rs 1 lakh each, along with a green shoe option of up to Rs 250 crore (25,000 additional NCDs). The proceeds will be categorized as Lower Tier II capital under the Basel II capital adequacy framework, helping the bank strengthen its capital base. The NCDs are proposed to be listed on BSE, with the coupon rate, tenure and schedule of repayment to be decided by the board later.
This is a debt-raising move, not an equity dilution, so existing shareholders are not impacted on ownership. It should improve the bank's capital adequacy ratio and support future lending growth, though the actual cost (coupon) and tenor are yet to be disclosed.