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HDFC bank raise up to ₹50,000 crore through bonds
April 12, 2023
![HDFC bank raise up to ₹50,000 crore through bonds](https://tscfm.org/wp-content/uploads/2023/04/Hdfc-bank-raise-up-to-₹50000-crore-through-bonds-1024x768.png)
Commercial banks’ combined fund raise through bonds (AT I, tier II and infrastructure bonds) was about ₹1.14 trillion in 2022-23 as against about ₹73,200 crore in FY22.
Among commercial banks, the country’s largest bank, State Bank of India (SBI), was the largest issuer in FY23. SBI raised about ₹38,851 crore, followed by HDFC Bank (₹23,000 crore), and Axis Bank (₹12,000 crore). HDFC Bank’s board of directors will consider this proposal at its meeting scheduled for April 15.
It will place these instruments perpetual debt instruments (AT1 bonds, Tier II capital bonds and long-term infrastructure bonds) through private placement, the bank said. Its stock closed 0.34 per cent higher at ₹1,663 per share.
In FY23, HDFC Bank had issued ₹20,000 crore through Tier II bonds and ₹3,000 crore through AT1 bonds. In the previous year (FY22), it had garnered ₹5,000 crore through infrastructure bonds in FY22, according to the JM Financial Services data.
The coupon rate for the bonds increased, reflecting that interest rates hardened and liquidity had tightened in FY23. This was an outcome of the Reserve Bank of India’s monetary policy stance hiking rates and withdrawing accommodation.
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