HDFC Bank to raise Rs 50,000 crore in capital over the next 12 months through the issue of bonds, stated on Tuesday. The private lenders stated in an exchange filing that the proposal would be considered by the board of directors at a meeting scheduled for April 15.
HDFC said, “…we wish to inform you that the Bank proposes to raise funds by issuing Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long-Term Bonds (Financing of Infrastructure and Affordable Housing) up to total amount of Rs. 50,000 crores over the period of next twelve months through private placement mode.”
“The Board of Directors would consider this proposal at its ensuing Board meeting to be held on April 15, 2023,” the filing added.
The announcement comes roughly a week after the lender issued an update on its fourth-quarter performance. In the three months ending March 2023, HDFC Bank‘s profit increased by 17 per cent year on year, while deposits increased by 21 per cent.
The fundraising announcement coincides with the completion of HDFC Bank’s merger with Housing Development Finance Corp Ltd (HDFC), which is expected by the end of June.
HDFC announced intentions last month to raise another Rs 57,000 crore through the issuance of non-convertible debentures (NCD). According to the company, the funds would be raised in various tranches.
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In mid-March, the National Company Law Tribunal’s (NCLT) Mumbai Bench approved the merger of mortgage financier HDFC Ltd and HDFC Bank, opening the way for one of India’s greatest financial behemoths. The Securities and Exchange Board of India (Sebi) and the Competition Commission of India (CCI), both of which are shareholders in both firms, have previously approved the merger. The Reserve Bank of India (RBI) and the two stock exchanges have also given its clearance.
