HDFC bank to raise ₹2.2 trillion
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Mumbai, Aug 1: HDFC Bank Ltd is likely to raise at least ₹2.2 trillion from public deposits and corporate bonds. An additional ₹50,000 crore from similar papers to meet capital requirements and other pre-requisites stipulated by the regulator for its merger with India’s largest mortgage lender and parent Housing Development Finance Corp. Ltd, two people directly familiar with the bank’s plan said.
“ ₹2.2-2.3 trillion of HDFC Ltd’s borrowings are from various banks, which needs to be paid off on day one of the mergers. This will come from deposits and bonds. Apart from that, at least ₹50,000 crore would also be raised from deposits, which will go towards meeting statutory liquidity ratio (SLR) and capital adequacy requirements (CAR)," said the first person.
HDFC Bank is worth more than DBS Group and UBS (valued at around $58 billion). The country’s largest lender State Bank of India ($57 billion) is at number 32 ahead of BNP Paribas ($55 billion) in terms of valuation. The combined market cap of HDFC Bank and HDFC ($52 billion) would be around $160 billion. The Financial Stability Board, an international body that makes recommendations on financial regulation, termed JP Morgan the most systemically important bank for 2021 followed by BNP Paribas, Citigroup, and HSBC.
The board publishes a list of 30 systemically important banks worldwide. While the 2021 list does not have any Indian bank, it has four Chinese lenders. China has five banks in the Top 10, the most for any country.