India’s leading private sector lender HDFC Bank is planning to raise up to Rs 50,000 crore through debt in the next 12 months.
In a regulatory filing, the bank 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).”
The proposal is most likely to be taken up during the meeting of the bank’s board of directors on 20 April, when the lender will also announce the quarterly results.
Meanwhile, the bank also reduced the marginal cost-based lending rates (MCLR) by 5 to 10 basis points across various tenors.
The move, which ensures to offer relief to the borrowers, see the day in response to the Reserve Bank of India’s repo rate cut by 25 basis points for a second time last week. As mentioned in the bank’s website, the overnight and one-month MCLR rate is currently at 8.30 percent. Earlier, the overnight rate was 8.35 percent and the one-month rate was 8.40 percent.
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