In order to raise Rs 50,000 crore through private placement of various securities, HDFC Bank has announced that it would approach its shareholders for approval of the proposal. One of the largest private sector banks will seek nod to raise the funds by issuing perpetual debt instruments, tier-II capital bonds and senior long-term infrastructure bonds. The said information was notified in the stock exchange.
Board of directors of the bank have convened a meeting on 19 May to decide on when it will be arranging the next annual general meeting to seek these shareholder approvals. Notably, the private sector lender had raised Rs 3,000 crore through private placements of bonds in April 2015.
Last week, the bank reported a net profit of Rs 3,374 crore for the January-March quarter, up over 20 per cent from a year ago. The growth in profit was aided by a healthy growth in net interest income (NII). For the fourth quarter, NII rose 24% to Rs.7,453.3 crore, while the non-interest income was up 11.8% to Rs.2,865.9 crore.