HDFC Bank :2024 approves Rs 60,000 crore fund raise via bonds private placement

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HDFC Bank approves Rs 60,000 crore fund raise via bonds private placement

HDFC Bank

HDFC Bank’s board of directors, on April 20, approved the annual renewal of long-term bonds and perpetual debt instruments up to Rs 60,000 crore in the next 12 months.

HDFC Bank “approved the annual renewal of issuance of Long-Term Bonds (Financing of Infrastructure and Affordable Housing), Perpetual Debt Instruments (part of Additional Tier I capital) and Tier II Capital Bonds up to total amount of Rs. 60,000 crores over the period of next twelve months through private placement mode”, the company said in its regulatory filing.

TVR INSTITUTE 

The private lender’s board met on April 20 to declare the results for the quarter ended in March 2024. HDFC Bank’s net profit gained 0.84 percent from the previous quarter to Rs 16,511 crore. It came in line with the market estimate of Rs 16,576 crore. Its net interest income (NII) increased to Rs 29,007 crore from Rs 28,470 crore in the previous quarter. The bank’s results are not comparable with the previous year due to its merger with HDFC Ltd in 2023.

Yes, you are correct. HDFC Bank did recently announce plans to raise a significant amount of money through debt instruments. Here’s a breakdown of the key points:

HDFC Bank

  • Fundraise amount: Rs 60,000 crore (approximately $7.2 billion)
  • Method: Private placement of bonds. This means the bank will be selling bonds directly to institutional investors, not on the open market.
  • Types of bonds:
    • Long-Term Bonds for financing infrastructure and affordable housing.
    • Perpetual Debt Instruments (part of Additional Tier I capital) – These act like equity but are considered debt for regulatory purposes.
    • Tier II Capital Bonds – These are another form of supplementary capital that helps the bank meet regulatory requirements.
  • Timeline: Over the next twelve months.
  • Approval status:
    • Needs approval from HDFC Bank shareholders.
    • Needs any other regulatory approvals that may be applicable.

This fundraise will likely strengthen HDFC Bank’s financial position and allow them to lend more money and invest in future growth.

There are two possible interpretations for “HDFC Bank Demand”:

  1. Demand Draft (DD): If you’re looking for information on how to get a Demand Draft from HDFC Bank, here’s what you need to know:

    • A Demand Draft is a guaranteed payment instrument issued by the bank, unlike a cheque which comes from your account.
    • You can visit any HDFC Bank branch to request a Demand Draft.
    • You’ll need to fill out an application form and pay the issuance charges.
    • The bank debits the amount from your account and issues a DD payable to the recipient.
    • You can find more details about fees, processing timelines, and delivery options on HDFC Bank’s website here: https://www.hdfcbank.com/personal/save/accounts/demand-draft.

  2. High Demand for HDFC Bank Services: It’s also possible you’re interested in the general demand for HDFC Bank’s products and services.

In this case, there’s no direct way to measure overall demand at HDFC Bank. However, some factors can indicate strong customer interest:

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