Page 24 - Banking Finance December 2019

PRESS RELEASE

ICICI Bank and TranzLease join hands to launch ‘SMART EMI’ for car

enthusiasts

ICICI Bank announced the launch of an innovative equated and salaried individuals and will soon be available for self-
monthly installment (EMI) facility, in association with employed customers. As a pilot, customers in Mumbai and
TranzLease, an automobile leasing & mobility solutions Delhi-NCR can avail of this facility and take home cars of
company, which enables customers to drive a new car home almost all leading makers. It will soon be available in Pune,
at lower cost and higher convenience. Termed as ‘SMART Bengaluru, Hyderabad and Chennai.
EMI’, this next-gen auto loan takes care of the insurance
Speaking on the partnership, Mr. Ravi Narayanan, Head -
and maintenance requirement of the vehicle during the
Secured Assets, ICICI Bank said, “ICICI Bank has always been
financing period. The amount of ‘SMART EMI’ is much lower committed at offering path-breaking products and services
than regular car loan EMI as the estimated resale value of to its customers at the fastest possible speed and with the
the car is deducted upfront. Above all, this gives the users highest level of convenience. It marks the Bank’s entry into
an option to either own the car at the end of the tenure by this burgeoning car financing segment. We are pleased to
making payment of an agreed resale value or simply return offer this specialised and unique experience to the car
the car to the leasing company. In case of such return,
enthusiasts and are happy to introduce ‘SMART EMI’ facility.
customers are rewarded with special bonus.
A first-of-its-kind innovative financing option developed for
This simple yet cost effective offering is developed, keeping the car enthusiasts to help them to take home a car of their
in mind the special need of corporates and individuals who choice on lease without having to worry about financing,
are keen to upgrade their vehicles in a few years. This insurance and maintenance. The choice of car ranges from
unique proposition offers lower EMI in comparison to a an array of entry level hatchback to the luxury segment
regular car loan EMI as well as eliminates the hassle of sedans and SUVs. We believe, with introduction of this new
unbudgeted and unforeseen expenses and unknown resale proposition, customers will have a unique and hassle-free
value. Currently, this offering is available for both corporates vehicle purchase experience.”

Axis Bank Limited Announces Qualified Institutions Placement to

raise Rs. 12,500 crores
Axis Bank Limited, one of India’s largest private sector banks announced the opening of its Qualified Institutions Placement
(“QIP”) to raise funds to enhance its capital adequacy, in accordance with
the regulatory requirements, for its growth strategy and for general
corporate purposes. The QIP was approved by the shareholders of the Bank
through a postal ballot on August 21, 2019.
We understand that the transaction is the largest ever QIP by a private sector
issuer in India. Despite a challenging macro-economic and market
environment, the placement has witnessed strong reception from the global
and domestic investor community. The deal was oversubscribed with the
aggregate final transaction size being Rs. 12,500 crores.

The QIP issuance was done at a price of Rs. 629 per Equity Share at a tight discount of 1.44% over the closing price of
the issue opening date i.e. September 19, 2019. The QIP issuance price of Rs. 629 per Equity Share is at a discount of
4.91% to the floor price of Rs. 661.50 per Equity Share, determined as per the SEBI formula. The transaction was anchored
by several large marquee foreign portfolio investors, domestic mutual funds and insurance companies.
Mr. Amitabh Chaudhry, MD & CEO, Axis Bank said, “The reception for the QIP is an endorsement of Axis Bank and its
strong fundamentals. We are deeply honored by the faith that all stakeholders from the financial community have placed
on the Axis Bank franchise and the continued support from investors. We are excited about the opportunities that would
be created through this capital raise. We will strive to ensure that we continue our growth journey and keep delivering
the best value to our customers, shareholders and investors consistently and on a sustainable basis.”

24 | 2019 | DECEMBER | BANKING FINANCE