Equitas Small Finance Bank’s Board of Directors has approved the issuance of up to ₹500 crore in Non-Convertible Debentures (NCDs). These are rated, listed, unsecured, subordinated, and redeemable instruments designed to bolster the bank’s Tier II capital. The issuance will be conducted on a private placement basis in dematerialized form.
Capital Raising Through NCDs Approved
The Board of Directors of Equitas Small Finance Bank met on September 16, 2026, and has approved a significant capital raising initiative. The bank will proceed with the issuance of Non-Convertible Debentures (NCDs) to enhance its capital base. This strategic move aims to strengthen the bank’s financial position and support its future growth objectives.
Details of the NCD Issuance
The approved issuance involves up to 50,000 NCDs, each with a face value of ₹1,00,000 (Rupees One Lakh), bringing the total aggregate nominal value to a maximum of ₹500,00,00,000 (Rupees Five Hundred Crores). These instruments are characterized as:
- Rated
- Listed
- Unsecured
- Subordinated
- Transferable
- Redeemable
- Fully Paid Up
- Lower Tier II
The NCDs will be categorized as Lower Tier II Capital, aligning with the Basel II framework for Capital Adequacy. The issuance will be completed in a single series and will be conducted on a private placement basis, with the debentures to be issued in dematerialized form.
Listing and Future Details
The Non-Convertible Debentures are proposed to be listed on BSE Limited. The specific tenure of the instrument, along with the schedule of coupon/interest and principal payments, will be determined and approved by the Board of Directors. The issuance is unsecured, meaning no specific charges will be created over the bank’s assets.
The Board meeting commenced at 11:00 hours and concluded at 11:45 hours on September 16, 2026.
Source: BSE
