Print   Close

HDFC Bank to raise Rs 50,000 crore via debt issue this fiscal

BusinessToday.In     April 8, 2019

Private sector lender HDFC Bank on Monday said it plans to raise fund up to Rs 50,000 crore by issuing debt instruments over the next 12 months.

"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 a total amount of Rs. 50,000 crore," HDFC Bank said in a filing to the Bombay Stock Exchange.

The bank will raise capital over the period of next twelve months through private placement mode, it said in the exchange filing.

The board of directors would consider this proposal at its ensuing board meeting to be held on April 20, 2019, it added.

Earlier today, HDFC Bank reduced its marginal cost-based lending rates (MCLR) by 5-10 basis points across various tenors with effective from April 8, a move which is likely to provide some respite to home loan borrowers.

Also Read: Bharti Airtel gets SEBI nod to raise up to Rs 25,000 crore via rights issue

In a separate development, the Bombay Stock Exchange (BSE) signed a memorandum of understanding (MoU) with HDFC Bank to further strengthen the BSE Startups platform. BSE had launched the Start Up platform on December 22, 2018 with an aim to encourage entrepreneurs to get listed and raise equity capital for their growth and expansion.

Commenting on the development, Smita Bhagat, Country Head - Government, e-commerce and Start-ups, HDFC Bank, "This is part of our commitment to the larger cause of strengthening the Startup community/ecosystem in the country. Startups are today reimagining and reshaping the world we live in. We are already partnering with them by mentoring them and giving them a chance to work with us. We are extremely happy to reinforce our commitment to them through this partnership with BSE".

Meanwhile, shares of HDFC Bank closed day's trade at Rs 2288.90, down 0.56 per cent, on the BSE.

Edited by Chitranjan Kumar

URL for this article :
@ Copyright 2019 India Today Group.