HDFC Bank Collects Rs 7,425 Cr Via Non-Convertible Bonds
On Wednesday, HDFC Bank disclosed its successful raising of Rs 7,425 crore through non-convertible bonds (NCDs), via a regulatory filing. The bank opted for a private placement, issuing 7.71 per cent unsecured, redeemable, long-term, fully paid-up, non-convertible bonds in the form of debentures.
The funds, garnered from 7,42,500 bonds valued at Rs 1,00,000 each, are specifically earmarked for infrastructure and affordable housing projects.
Despite this development, the bank's stocks saw modest gains upon closure at the stock exchanges on Wednesday, settling at Rs 1,656.20 on the BSE, marking a 0.19 per cent rise from the previous close.
This bond issuance occurs amidst a robust demand for credit within the banking sector, despite prevailing high-interest rates. Recent data highlights credit growth exceeding 20 per cent, even as the RBI maintains the repo rate at 6.50 per cent, sustaining it for the fifth consecutive time after a 250-basis-point increase between May 2022 and February 2023.
In a similar move, SBI recently secured Rs 10,000 crore via Tier II bonds to fuel its business expansion, while reports suggest Bank of Baroda's intent to raise up to Rs 2,500 crore through bond issuance.
