HDFC Bank to seek nod for raising R50k cr

New Delhi, June 17: HDFC Bank will seek the approval of its shareholders to raise R50,000 crore for affordable housing and infrastructure development.

“The board of directors has approved to seek the consent of the shareholders for borrowing/raising funds in Indian currency by issue of perpetual debt instruments, tier-II capital bonds and senior long-term infrastructure bonds in the domestic market on a private placement basis...

“...and/or for making offers/invitations...for a period of one year from the date thereof, in one or more tranches of an amount not exceeding R50,000 crore,” the lender said in a BSE filing.

The bank also disclosed the businesses agenda for its annual general meeting to be held on July 21.

The funds will be used for affordable housing finance, HDFC Bank said.

In July, 2015, the Reserve Bank of India had issued guidelines for banks on 'issue of long-term bonds by banks-financing of infrastructure and affordable housing' to ensure availability of funding to such sectors.

These guidelines enable banks to raise long term funds from the market, HDFC Bank said.

Besides, the AGM agenda includes appointment of a director. “To appoint a director in place of Keki Mistry, who retires by rotation and being eligible offers himself for re-appointment,” it added.

Shares of the bank closed up 0.59% at R1,169.20 on the BSE. PTI