The bank has sought shareholders’ approval to issue unsecured perpetual debt instruments (part of AT1 capital), and tier-II capital bonds.
In addition, it has sought the green light to issue long-term bonds (financing of infrastructure and affordable housing) on a private placement basis, shows the notice for its annual general meeting scheduled for July 18.
Total capital adequacy ratio stood at 18.5 per cent in March, well above the regulatory requirement of 11.075 per cent. Tier-I capital stood at 17.2 per cent as of March 31.
The Audit Committee has given its nod for the purchase of HDFC’s home loans, to a limit of Rs 25,000 crore for FY20, and of Rs 28,000 crore for FY21.
Under the arrangement between the lender and the promoter, the bank sources home loans for HDFC through its branches. HDFC approves of and disburses the loans after necessary due diligence. The bank has the right but no obligation to buy up to 70 per cent, or a portion as agreed, of the sourced and disbursed home loans.
The bank said it originated, on an average, Rs 2,350 crore of home loans every month in the year under review, and purchased Rs 24,127 crore as direct assignment of loans.
Advances expanded by 21.3 per cent to Rs 9.93 trillion at the end of March 2020. The domestic loan portfolio of Rs 9.74 trillion grew 21.4 per cent over March 2019.
HDFC Bank commanded a 9.3 per cent share of the overall domestic advances in banking system.
In its domestic business, retail forms a key unit in which advances rose 14.6 per cent to Rs 4.94 trillion from Rs 4.31 trillion, according to the FY20 annual report.
Corporate banking, with a focus on large and well-rated firms, continued to be the biggest contributor to wholesale banking in terms of asset size. It was able to capitalise on the trend of large firms preferring to deal with fewer banks. The segment closed FY20 with a loan book size of Rs 2.4 trillion — a rise of 57 per cent year-on-year.