HDFC Bank, India's second-largest private sector lender, will be seeking shareholders' approval to raise Rs. 50,000 crore in debt to drive growth. The Mumbai-based lender's board of directors will meet on May 19 to fix the shareholders' meeting.
The bank will seek approval to raise the amount by issuing perpetual debt instruments, tier II capital bonds and senior long-term infrastructure bonds in the next 12 months on private placement basis, it said in a regulatory filing on Friday.
On Thursday, the bank announced a tie-up with Lucknow Development Authority (LDA), whereby residents of Uttar Pradesh can use HDFC Bank's payment gateway for transactions on LDA website.
The HDFC Bank stock closed at Rs. 1,133.45 on the BSE on Friday, up 1.69 percent from its previous close.
The bank declared its fourth quarter results on April 22.
Net profit of the bank rose 20 percent to Rs. 3,374.20 crore on a year-on-year basis for the fourth quarter ended March 2016, while net interest income grew 24 percent to Rs. 7,453 crore from Rs. 6,013 crore in the corresponding quarter last fiscal.
The bank's net non-performing assets (NPAs) stood at 0.28 percent of total advances, an increase from 0.25 percent as on March 31, 2015.
For 2015-16, net profit increased by 20.4 percent to Rs. 12,296 crore, while net revenues grew 22.1 percent to Rs. 38,343 crore from Rs. 31,392 crore in the previous year. The net interest margin was 4.3 percent.
The bank's deposits grew 21 percent to Rs. 5,46,424 crore and advances increased 27.1 percent to Rs. 4,64,594 crore.
HDFC Bank declared a dividend of Rs. 9.50 per share.
The bank's capital adequacy ratio as per Basel III guidelines was 15.5 percent as on March 31, 2016, as against 16.8 percent as on March 31, 2015.
[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]