HDFC plans to raise Rs 50,000 crore via bonds

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.