India's largest private sector lender HDFC Bank on Wednesday (December 20) announced the successful mobilisation of ₹7,425 crore through the issuance of non-convertible bonds.
The bank, via a private placement, issued 7.71% unsecured, redeemable, long-term, fully paid-up, non-convertible bonds in the form of debentures. This strategic funding initiative aims to support crucial infrastructure and affordable housing projects.
The regulatory filing confirmed the issuance of 7,42,500 bonds, each with a face value of ₹1 lakh. The funds generated through this issuance will be directed toward funding initiatives that contribute to the development of infrastructure and affordable housing projects.
HDFC Bank reported a 9.3% rise in net profit at ₹15,976 crore for the quarter ending September 2023 compared to CNBC-TV18 poll’s forecast of ₹14,616.5 crore. The bank's net interest income (NII) for the quarter stood at ₹27,385 crore, slightly below CNBC-TV18's projected NII of ₹28,187.4 crore.
The lender also disclosed key asset quality metrics, including gross non-performing assets (GNPAs) at ₹31,578 crore, representing 1.34% of gross advances, and net NPA at ₹8,073 crore, accounting for 0.35% of net advances. Additionally, the bank set aside provisions totalling ₹2,904 crore.
HDFC Bank's return on assets (RoA) was reported at 1%, annualised at 2% for the first half of FY24. The net interest margin was at 3.4%, while the core net interest margin stood at 3.65%. The bank's pre-provision operating profit reached ₹22,694 crore. The gross advances stood at ₹23.54 lakh crore.
Shares of HDFC Bank Ltd ended at ₹1,656.20, up ₹3.15, or 0.19%, on the BSE.
