Private sector Lakshmi Vilas Bank plans to raise over Rs 1,250 crore through various instruments.
The decision was taken at the bank's annual general meeting held on July 18, 2017, the lender said in its annual report for 2016-17.
The bank further said that it will tap both domestic and global markets for the funding.
The private sector bank said it will issue 5 crore equity shares, which on the basis of yesterday's closing price comes to Rs 1,006 crore.
Of the total amount of Rs 1,256 crore, it will raise Rs 250 crore by floating long-term infrastructure bonds in one or more tranches in domestic or overseas markets within an year.
On the rationale to issue equity shares, the bank said it intends to raise tier I capital in line with growth in business, expanding business requirements by issue of securities in domestic or international markets.
"The proposed resolution seeks the enabling authorisation to the board of directors to raise tier I capital through issue of equity shares in the domestic and international markets in one or more tranches," it added.
On debt issuance, it said considering the "attractive features of revised RBI guidelines of long term bonds... These bonds will also assist the bank in reducing asset liability mismatches".
Stock of the bank closed 0.30 per cent up at Rs 200.60 on BSE today.
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