HDFC to raise up to Rs 85,000 cr this fiscal

Amount will be raised through issue of redeemable Non-Convertible Debentures

The Housing Development Finance Corporation (HDFC) is planning to raise up to Rs 85,000 crore this fiscal and for the same the company will be seeking  shareholders nod in the Annual General Meeting (AGM) to be held later this month.

The company informed the exchanged that the thirty eighth AGM of the company will be held on July 28. The amount will be raised by the company through issue of redeemable Non-Convertible Debentures (NCDs) which can be either secured or unsecured. The fund raising will also include any other hybrid instruments which can be classified as being tier-III capital.

HDFC also has plans to raise $ 500 million through External Commercial Borrowings (ECBs) for which it had received the approval from the Reserve Bank of India (RBI). However, this ECB is not a part of the Rs 85,000 crore. HDFC had informed the exchanges in April about it and the approval from the central bank was valid for a period of six months.

HDFC had posted a 8 per cent year-on-year growth in standalone net profit for the March quarter at Rs 1,862.43 crore due to growth in loan book and improvement in asset quality.