HDFC Bank plans to raise ₹60,000 crore via debt instruments

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Bank on Saturday (April 20) announced plans to raise ₹60,000 crore through various debt instruments. The decision was finalised during the Board of Directors meeting, where key approvals were granted for the annual renewal of issuance.

These instruments include long-term bonds aimed at financing infrastructure and affordable housing projects, perpetual debt instruments forming part of Additional Tier I capital, and Tier II Capital Bonds, the lender said in a regultory filing.

This fundraising endeavor is slated to unfold over the next twelve months and will be facilitated through private placement mode.

However, this will require approval of the shareholders of HDFC Bank and compliance with any regulatory prerequisites.

In a separate announcement, HDFC Bank reported 0.9% sequential increase in net profit, totaling ₹16,511.9 crore. However, this figure fell short of CNBC-TV18 poll, which had anticipated a profit of ₹18,361.5 crore.

Year-on-year numbers are not comparable due to the bank’s merger with Housing Development Finance Corporation (HDFC) on July 1, 2023.

The bank further announced that its board of directors recommended a dividend of ₹19.5 per equity share of ₹1 for the year ended March 31, 2024.

Shares of HDFC Bank closed trading on April 19 at ₹1531.30, reflecting a 2.46% increase on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow