HDFC Bank plans to raise Rs 50,000 crore by issuing bonds

Country’s largest private sector lender HDFC Bank on Wednesday said it plans to raise up to Rs 50,000 crore in the next one year by issuing bonds on a private placement basis. This decision was taken in the board meeting of the bank.

“The bank proposes to raise funds by issuing permanent debt instruments (part of additional Tier I capital), Tier II capital bonds and long-term bonds (financing of infrastructure and affordable housing) totaling up to Rs 50,000 crore over this period. through private placement mode in the next 12 months,” HDFC Bank said in a regulatory filing.

It said the board of directors would consider the proposal in its meeting to be held on April 16, 2022.

Perpetual bonds have no maturity date, so they can be treated as equity, not debt.

Earlier this week, HDFC Bank agreed to take on its parent and country’s largest mortgage lender HDFC Ltd, as part of its strategy to boost growth, especially in the affordable housing segment.