HDFC Bank proposes to raise up to Rs 50,000 cr over next 12 months via bonds

Private lender HDFC Bank on Wednesday said that it proposes to raise funds via debt, capital and long-term bonds up to Rs 50,000 crore over the period of next twelve months through private placement mode.

"With reference to the Regulations, 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 LongTerm Bonds (Financing of Infrastructure and Affordable Housing) up to total amount of Rs. 50,000 crores over the period of next twelve months through private placement mode," HDFC Bank said in a regulatory filing.

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The Board of Directors would consider this proposal at its ensuing board meeting to be held on April 16, 2022, the lender added.

Shares of HDFC Bank settled at Rs 1,550.80 lower by 3.51 per cent on BSE on Wednesday after witnessing two-day heavy selling pressure amid profit booking at higher valuations.

On Monday, shares of HDFC and HDFC Bank had witnessed heavy buying and settled with nearly 10 per cent gains as investors lapped up the announcement of their proposed merger.

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In the biggest merger in corporate history, India's largest housing finance company HDFC will merge with the country's largest private lender HDFC Bank to create a banking behemoth.

Once the deal is effective, HDFC Bank will be wholly owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank, according to stock exchange filings by the firms.