Profit

HDFC Bank Plans Up To Rs 24,000-Crore Share Sale

HDFC Bank has the lowest bad-loan ratio among India's top banks and is an investor favourite with its consistent profit growth in a sector whose profitability has been burdened by the large amount of bad debt in their books.

 Share
EMAIL
PRINT
COMMENTS
HDFC Bank Plans Up To Rs 24,000-Crore Share Sale

HDFC Bank has said the shareholders will be asked to vote on the plan on January 19


Mumbai: HDFC Bank Ltd, India's second-biggest lender by assets, said on Wednesday it would raise up to Rs 24,000 crore ($3.75 billion) to fund growth by selling shares to investors, including a preferential issue to its parent HDFC Ltd. 

HDFC Bank, the most valuable in the sector with a market capitalisation of more than $76 billion, said in a statement its board had approved the fundraising plan on Wednesday. Shareholders will be asked to vote on the plan on January 19, the lender added.

As part of the planned fundraising, HDFC Bank will issue up to Rs 8,500 crore worth of shares to mortgage lender HDFC Ltd on a preferential basis, while the remainder will be raised via modes including American Depositary Receipts and a share sale in India to institutional investors.

HDFC Bank has the lowest bad-loan ratio among India's top banks and is an investor favourite with its consistent profit growth in a sector whose profitability has been burdened by the large amount of bad debt in their books.

The bank, which is also listed in New York, last raised Rs 9,766 crore in equity capital in 2015.

As of end-September, HDFC Bank had a capital adequacy ratio of 15.1 per cent against a regulatory requirement of 10.25 per cent. HDFC Bank is one of the three in India designated by the central bank as "too big to fail".

HDFC Bank shares gained as much as 1 per cent, hitting a record high of Rs 1,903.1. The stock has risen 56 per cent this year, compared with a 28 per cent gain in the Nifty 50 index and a 41.5 per cent rise in the banking sector index .

($1 = Rs 64.0650)
© Thomson Reuters 2017


Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top