HDFC Bank board approves raising Rs.24,000 crore
http://www.newspatrolling.com — “The Board of HDFC Bank approved raising up to Rs.24,000 crore through the issue of shares. Out of this, Rs.8500 crore will be raised via preferential issue to its parent company, HDFC. The balance Rs.15,500 crore will be raised through placement with qualified institutional buyers (QIBs) and through issue of ADRs. HDFC Bank currently has a capital adequacy ratio of 15.1% and once the fundraising is completed, its capital adequacy ratio will get closer to 18%.
HDFC Bank stock is currently quoting at its all-time high and hitting the market right now will permit the bank to raise money at attractive valuations. With a GDP and industrial revival expected in the next few quarters, HDFC Bank is keeping its war chest ready so that capital adequacy does not become a hindrance when it comes to aggressively expanding its loan book. The bank will seek shareholder approval for this capital raising program at its forthcoming EGM on January 19th.”
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