New Delhi: Private sector lender HDFC Bank Ltd will seek shareholders’ nod to raise Rs.50,000 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,” HDFC Bank said in a BSE Ltd filing.
“…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 Rs.50,000 crore,” it said in the filing.
The bank also disclosed the businesses agenda for its annual general meeting (AGM) to be held on 21 July. The funds will be used for affordable housing finance, HDFC Bank said.
In July, 2015, the Reserve Bank of India 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.
The AGM agenda includes the 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.
The bank will declare dividend on equity shares for year ended March 2016.