Private sector lender HDFC Bank on Friday said it plans to raise ₹50,000 crore through perpetual debt instruments in the next 12 months to fund business expansion.

“... the bank proposes to raise funds by issuing Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing),” it said, adding that it will be done through private placement.

SBI gets ECCD nod

The Executive Committee of the Central Board (ECCB) of SBI on Friday accorded its approval for extending the validity period for raising AT (Additional Tier) 1 capital up to an amount of Rs 8,000 crore till March 31, 2019.

Accordingly, the ECCB authorised the Bank to raise up to ₹8,000 crore AT 1 capital by way of issuance of Basel III compliant perpetual debt instruments in US Dollar and/ or Indian Rupee at par through private placement to overseas and/ or Indian investors.

This issuance can be in such number of tranche(s) at such time(s) as may be considered appropriate and on such coupon(s) as may be decided at the time of actual issuance during FY2018-19, the bank said in a stock exchange notification.

While the shares of HDFC Bank closed flat at ₹1,928.05, those of State Bank ended 1.22 per cent lower at ₹251.2, on the BSE.

social-fb COMMENT NOW