HDFC Bank to raise Rs 50,000 crore via bonds; re-appoints Renu Karnad as director

HDFC Bank on Saturday said it will raise up to Rs 50,000 crore in the next one year by issuing bonds aimed at financing infrastructure and affordable housing loan requirements of the customers.

The decision was taken at the meeting of the board of directors.

The board has approved the issuance of perpetual debt instruments (part of additional tier I capital), tier II capital bonds and long term bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore, it said in a regulatory filing.

The funds will be raised in the period of the next 12 months through private placement mode, subject to approval of shareholders among others, it added.

The country’s largest private sector lender by asset size, which is set to merge its parent comany HDFC Ltd with itself, also informed that the board has approved to re-appoint Renu Karnad as non-executive director on the board of the bank for a period of five years with effect from September 3, 2022.

Her appointment is subject to approval of the shareholders at the ensuing annual general meeting of the bank.

Karnad’s re-appointment is as a nominee director of Housing Development Finance Corporation (HDFC Ltd), promoter of the bank. Renu Karnad is the Managing Director of Housing Development Finance Corporation Ltd since 2010.

“Karnad is not debarred from holding office of director by virtue of any SEBI order or any other such authority. She is not related to any director of the bank,” HDFC Bank said.