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.
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.
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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.