TT Epaper
The Telegraph
TT Photogallery
 
CIMA Gallary

HDFC Bank to raise funds

Mumbai, May 20: HDFC Bank is planning to raise Rs 10,000 crore from a share sale.

This was decided at a board meeting of India’s second largest private sector bank on May 19.

In a communication to the stock exchanges today, HDFC Bank said it would move an enabling resolution seeking approval of its shareholders at the forthcoming annual general meeting “to raise the equity share capital of the bank by up to an aggregate sum of Rs 10,000 crore, including the share premium amount”.

The proposed issue is to be made through one or more offers in the domestic or international markets. The offers could be of public or private nature.

The funds could be raised through equity shares through depository receipts and/or any instrument or securities representing equity shares and/or convertible securities linked to equity shares, the filing said.

The existing market capitalisation of the bank is about Rs 1.96 lakh crore. The paid-up capital stood at Rs 479.81 crore at the end of March 2014.

“The issue of capital is subject to the applicable laws, Sebi regulations and approvals of the Reserve Bank of India and other regulatory authorities,” it said.

The issue is proposed to be completed within a period of one year from the date of shareholders approval.

Other lenders, including PSU banks, may also raise capital from the domestic or overseas markets.

The Union Bank has indicated that it plans to raise Rs 1,400 crore in the next two quarters to fund its capital requirements. The nationalised bank has headroom to raise additional tier 1 capital (core capital) of Rs 4,000 crore in this year.

HDFC Bank posted a 23.1 per cent rise in net profit at Rs 2,326.52 crore in the March quarter of 2013-14 against Rs 1,889.84 crore in the corresponding period of the previous fiscal.

Its scrip today gained 0.47 per cent to close at Rs 815.65 on the BSE.

 
 
" "