Mumbai: HDFC Bank’s board of directors, on April 20, approved the annual renewal of long-term bonds and perpetual debt instruments up to INR 60,000 crore in the next 12 months.

HDFC Bank “approved the annual renewal of issuance of Long-Term Bonds (Financing of Infrastructure and Affordable Housing), Perpetual Debt Instruments (part of Additional Tier I capital) and Tier II Capital Bonds up to total amount of INR 60,000 crores for next twelve months through private placement mode”, the company said in its regulatory filing.

The private lender’s board met on April 20 to declare the results for the quarter ended in March 2024. HDFC Bank’s net profit gained 0.84% from the previous quarter to INR 16,511 crore. It came in line with the market estimate of INR 16,576 crore. Its net interest income (NII) increased to INR 29,007 crore from INR 28,470 crore in the previous quarter. The bank’s results are not comparable with the previous year due to its merger with HDFC Ltd in 2023.

The bank’s net revenue grew to INR 47,240 crore, including transaction gains of INR 7340 crore from the stake sale in subsidiary HDFC Credila Financial Services. The bank also announced a special dividend of INR 19.5 per equity share of INR 1.

According to a report by S&P Global Market Intelligence, three Indian lenders made it to the list of top 50 banks by assets in the Asia-Pacific region in 2023, up from two in 2022. These Indian banks are the State Bank of India, HDFC Bank, and ICICI Bank.

According to the financial information and analytics firm, Indian banks have been among the best-performing lenders among peers in Asia. Improvement in financial metrics, coupled with high credit growth in a robust economic environment, has boosted banks' assets in recent years.

HDFC Bank's assets jumped 51.3% to USD 466.35 billion after the merger, propelling the bank up 13 places to 33 in the top 50 ranking.

In a separate announcement, HDFC Bank reported a 0.9% sequential increase in net profit, totalling INR 16,511.9 crore. Year-on-year numbers are not comparable due to the bank's merger with Housing Development Finance Corporation (HDFC) on July 1, 2023.

Shares of HDFC Bank closed trading on April 19 at INR 1531.30, reflecting a 2.46% increase on the BSE.

Article Sources – HDFC Bank Press Release, ANI