HDFC Bank board approves ₹60,000 crore bond issuance for FY25

The Board of Directors of HDFC Bank on Saturday approved the annual renewal of issuance of bonds aggregating up to ₹60,000 crore over the next twelve months through private placement mode.

Last year, the private sector bank’s board approved issuing bonds aggregating up to ₹50,000 crore.

The decision to increase the total bond issuance by ₹10,000 crore in FY25 comes amid lagging deposit growth and credit growth.

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The private sector bank’s total deposits grew 26.4 per cent year-on-year (yoy) as at March-end 2024 (to ₹23,79,800 crore) against gross advances growth of 55.4 per cent yoy (to ₹25,07,800 crore).

The Bank plans to raise resources via Long-Term Bonds (Financing of Infrastructure and Affordable Housing), Perpetual Debt Instruments (part of Additional Tier I capital) and Tier II Capital Bonds, per its regulatory filing.

The annual renewal of issuance of bonds is subject to the approval of the shareholders of the Bank and any other regulatory approvals as may be applicable.

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