Latest News | HDFC Bank to Raise Rs 50,000 Cr Via Bonds
Get latest articles and stories on Latest News at LatestLY. Private sector HDFC Bank on Saturday said its board gave approval for raising Rs 50,000 crore from bonds during the current fiscal to fund business growth.
New Delhi, Apr 15 (PTI) Private sector HDFC Bank on Saturday said its board gave approval for raising Rs 50,000 crore from bonds during the current fiscal to fund business growth.
The decision in this regard was taken in the board meeting during the day, HDFC Bank said in a regulatory filing.
The board of directors of "HDFC Bank at its meeting held today, has approved the issuance of Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long-Term Bonds (Financing of Infrastructure and Affordable Housing) up to total amount of Rs 50,000 crores over the period of next twelve months through private placement mode," it said.
This is subject to the approval of the shareholders of the bank and any other regulatory approvals as may be applicable, it added.
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HDFC has already received the required approvals from the Securities and Exchange Board, shareholders of HDFC and HDFC Bank, the Pension Fund Regulatory and Development Authority and the Competition Commission of India.
This approval will help pave the way for the merger of HDFC into HDFC Bank expected to be finalised by the third quarter of next financial year.
The proposed entity will have a combined asset base of around Rs 18 lakh crore.
Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)