HDFC plans to raise Rs 50,000 crore via bonds

The Asian Age.  | FALAKNAAZ SYED

Business, In Other News

The bank said its board will consider the proposal at its meeting on April 20, when it will also announce its quarterly results.

The move, which will bring relief to its borrowers, comes after the RBI cut the repo rate by 25 basis points last week.

Mumbai: Private lender HDFC Bank on Monday said it plans to raise up to Rs 50,000 crore this financial year by issuing bonds on a private placement basis. The bank proposes to issue perpetual debt instruments, tier-II capital bonds and long-term bonds.

“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) up to a total amount of Rs 50,000 crore in the period of next 12 months through private placement mode," the country’s largest lender by market capitalisation said in a regulatory filing.

The bank said its board will consider the proposal at its meeting on April 20, when it will also announce its quarterly results.

A banking analyst said, “This is just an enabling resolution. Last year, it raised equity capital of Rs 24,000 crore and did not raise any tier-I capital last year.”

Meanwhile, the bank cut its marginal cost-based lending rate (MCLR) by 5 to 10 basis points across various tenors. The new rates are effective April 8.

The bank cut its overnight MCLR to 8.30 per cent from 8.35 per cent and one-month rate to 8.30 per cent from 8.40 per cent. The three-month MCLR has been revised to 8.40 per cent from 8.45 per cent, six-month rate to 8.50 per cent from 8.55 per cent, one-year rate to 8.70 per cent from 8.75 per cent, two-year rate to 8.80 per cent from 8.85 per cent and three-year rate to 8.95 per cent from 9 per cent.

The move, which will bring relief to its borrowers, comes after the RBI cut the repo rate by 25 basis points last week.

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