axis bank

The Indian government raised over Rs55.4bn ($910m) on Friday selling off a stake in Axis Bank, the country’s third-largest lender by assets.

The funds brings New Delhi one step closer to meeting its fiscal deficit target for this financial year and allaying fears that the nation’s sovereign rating may be downgraded to junk status ahead of a closely contested general election. 

Shares in Axis Bank jumped 4.4 per cent in Mumbai on Tuesday, after the Indian private-sector bank announced plans to raise raise funds via a share sale, which reports put at $1bn.