 "HDFC Bank")
HDFC Bank will raise up to Rs 5,000 crore through additional tier I bonds for capital adequacy and business growth. Care Ratings has given “AA+” rating to the lender’s Basel III compliant tier- I bonds.
India’s largest private bank will separately raise up to Rs 5,000 crore through infrastructure bonds carrying "AAA" rating.
The capital raising ability and a healthy proportion of Tier-I capital provide the bank with headroom to raise additional Tier-II capital to maintain high growth, Care said.
During the nine months ended December 31, 2021, the bank raised Basel III compliant AT1 notes of $ one billion (equivalent Rs 7,423 crore) from the overseas market. The bank reported a Capital Adequacy Ratio (CAR) of 19.53 per cent (Tier-I CAR: 18.37 per cent) and CET-I Ratio of 17.10 per cent, as on December 31, 2021.
The bank continues to maintain a comfortable buffer over the minimum regulatory requirement CAR of 11.70 per cent, due to the increased requirement on account of being identified as a Systemically Important Bank- Domestic, under Basel III.
State-owned Bank of Maharashtra (BoM) has raised Rs 290 crore through additional tier I bonds (AT1 bonds) at a coupon of 8.75 per cent. The base issue was for Rs 250 crore with a green-shoe option of Rs 750 crore. These AT1 bonds, a perpetual financial instrument, have a call option at the end of five years. Pune-based lender’s capital adequacy ratio stood at 14.85 per cent with tier I of 10.61 per cent at end of December 2021.
