Axis Bank, India's third-largest bank in the private sector, has decided to close its Rs2,000-crore lower Tier-2 bond issue yeterday, two days ahead of the earlier scheduled closing date 17 June.

In a notice to the stock exchanges, the bank said as per the terms of issue, it was within its rights to change the issue closing date and the date of allotment at its discretion. The bank also advanced the date of allotment to 16 June from 19 June.

The 10-year bonds carry a coupon rate of 9.15 per cent according the notice.

Meanwhile, Union Bank of India (UBI), the country's sixth-largest lender today said it had raised additional capital of Rs200 crore through issue of subordinated perpetual bonds, in its filing to the BSE.

The issue opened 8 June and closed 13 June. The bonds which carry a coupon rate of 8.85 per cent per annum payable annually are rated as 'BWR AAA' by rating agency Brickwork. Crisil has rated the bonds 'AA+/Stable'.
The bank, in a filing, said the allotment would be completed on 16 June.

Axis Bank, spun out of the public sector financial giant, UTI, functioned as UTI Bank when it started operations in 1994, before adopting the new name last year (See: UTI Bank to change name to Axis Bank) 

It was among the first of the new private banks to be allowed to operate after the government of India allowed the establishment of new private banks. The bank was promoted jointly by the administrator of the specified undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and four PSU insurance companies – National Insurance Company Ltd, The New India Assurance Company Ltd, The Oriental Insurance Company Ltd and United Insurance Company Ltd.

The bank has its registered office at Ahmedabad, its central office in Mumbai and a very large network of over 827 branches and extension counters as of 31 March 2009. It has one of the largest ATM networks in country with over 3,595 ATMs that provide 24X7 banking to customers.

The bank, with strengths in both retail and corporate banking, is committed to adopting the best industry practices internationally, in order to achieve excellence.

The bank is capitalised to the extent of Rs359.00 crores with the public holding (other than promoters) at 57.60 per cent.