Private lender HDFC Bank is planning to raise Rs 50,000 crore via the issuance of additional tier-I (AT1) and tier-II bonds. Besides, it has plans to obtain home loans worth Rs 28,000 crore from promoter HDFC, in FY21.
The bank has requested shareholders’ approval for issuing unsecured perpetual debt instruments (part of AT1 capital), and tier-II capital bonds.
Further, it has requested nod to issue long-term bonds (financing of infrastructure and affordable housing) on a private placement basis, reveals the notice of the lenders annual general meeting scheduled for July 18.
The Audit Committee Okayed the purchase of HDFC’s home loans, up to Rs 25,000 crore for FY20, and of Rs 28,000 crore for FY21.
Under the agreement between the bank and the promoter, the lender obtains home loans for HDFC via its branches. HDFC disburses the loans after necessary adherences and formalities. The lender has the authority but no obligation attached to buy up to 70 percent, or a portion as agreed, of the sourced and disbursed home loans.