InvestorQ : Why is HDFC bank planning to raise Rs.50,000 crore during the current fiscal year?
Dilmini Mercia made post

Why is HDFC bank planning to raise Rs.50,000 crore during the current fiscal year?

Answer
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Dhwani Mehta answered.
3 months ago


HDFC Bank board approved raising Rs.50,000 during the year via the issue of debt securities to shore up its resource base. The fund-raising will be done through perpetual debt instruments tier II capital bonds and long term bonds. It must be remembered that Perpetual Bond are classified as Tier-1 capital while the rest are Tier-2 capital.

The bank will raise this capital through private placement of debt to select qualified institutional investors as well as to non-institutional investors with the appropriate risk appetite. HDFC Bank is keeping its coffers well stocked up so that it has enough resources to grow the book when the economy fully opens up post COVID-19 lockdown.