HDFC Bank proposes to raise ₹50,000 cr via bonds in next one year

The private lender’s board of director’s are to meet on 15 April,2023, said HDFC Bank in its regulatory filing.

HDFC Bank proposes to raise the money by issuing perpetual debt instruments, which is a part of Additional Tier I capital, Tier II Capital Bonds and Long-Term Bonds (Financing of Infrastructure and Affordable Housing).

“The meeting of the Board of Directors of HDFC Bank Limited (“the Bank”) on Saturday, April 15, 2023, 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 total amount of Rs. 50,000 crores over the period of next twelve months through private placement mode,” said HDFC Bank in its regulatory filing.

Recently, HDFC Bank registered nearly 17 per cent year-on-year growth in gross advances for the fourth quarter of FY23. The bank posted double-digit growth across lending verticals. Aggregate deposits soared by nearly 21%.

In the quarter ending March 31, 2023, HDFC Bank garnered advances of approximately Rs16,005 billion, rising by 16.9% from ₹13,688 billion in the same quarter last year. While the growth stood at 6.2% from advances of ₹15,068 billion in the December 2022 quarter.

Under the loan books, HDFC Bank’s domestic retail loans recorded 21% YoY and 5% QoQ growth. 

Further, its commercial & rural banking loans jumped by 30% YoY and 9.5% QoQ. Corporate and other wholesale loans increased by 12.5% YoY and 4.5% QoQ.

The bank also recorded robust growth in terms of deposits.

Its deposits stood at ₹18,835 billion in Q4FY23, rising by 20.8% compared to ₹15,592 billion in Q4FY22. Also, it posted a growth of 8.7% from deposits of ₹17,332 billion in the preceding quarter.

On Tuesday, the company’s scrip ended 0.42 per cent up at ₹1,665 on BSE.