HEADLINES:
November 17 2018
Additional capital to aid growth in rural areas: HDFC
15 June 2018

‘Decision bodes well for investment climate, foreign inflows’

Private sector lender HDFC Bank said on Thursday the capital it plans to raise would be mainly to support growth in semi-urban and rural areas. On Wednesday, the government approved the lender’s proposed ₹24,000 crore capital plan.

CCEA approval

Since this was an FDI proposal in excess of ₹5,000 crore not under the automatic route, it required approval from the Cabinet Committee on Economic Affairs (CCEA).

“We are delighted to hear that the government has approved our capital raising proposal. The additional capital will go a long way in supporting our growth plans over the next few years, especially in semi-urban and rural India,” said Paresh Sukthankar, deputy managing director, HDFC Bank.

“We do believe this decision bodes well for the overall investment climate and foreign inflows as well,” Mr. Sukthankar added.

The second largest private sector lender said the government’s approval comes against the backdrop of an expected pick-up in credit growth driven by consumption-led demand and recovery in the investment cycle.

In December, HDFC Bank’s board approved a capital raising plan of ₹24,000 crore through a mix of instruments, including preferential allotment to its parent HDFC. HDFC plans to infuse ₹8,500 crore in HDFC Bank.

As of March 31, 2018 the bank had a network of 4,787 branches and 12,635 ATMs and had 4.3 crore customers across 2,691 Indian towns and cities. The bank’s balance sheet for the year stood at ₹10.63 lakh crore.

 

 

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