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HDFC Bank raises Rs.7,425 crore for funding infra and housing projects


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Here’s a rewritten version of the news about HDFC Bank raising funds for infrastructure and affordable housing projects:

India’s largest private lender, HDFC Bank, successfully secured ₹7,425 crore through a private placement of non-convertible bonds. This strategic move aims to boost investments in crucial infrastructure and affordable housing projects.

The bank issued 742,500 bonds, each with a face value of ₹1 lakh, at an interest rate of 7.71%. This financing will provide long-term resources for infrastructure development and accessible housing initiatives.

A growing trend in bank fundraising

HDFC Bank is not alone in tapping into this fundraising method. Indian banks have doubled their use of long-term infrastructure bonds in 2023, raising over ₹58,400 crore compared to ₹29,600 crore last year. This surge reflects the increased government spending on long-term projects, creating new lending opportunities for banks.

The government’s ambitious ₹10 lakh crore investment in such projects this fiscal year further fuels this trend. With leading banks like Axis Bank, ICICI Bank, NABARD, and NaBFID planning similar bond issuances in the coming days, it’s clear that long-term infrastructure bonds are becoming a preferred tool for funding national development efforts.

Key takeaways:

  • HDFC Bank raised ₹7,425 crore for infrastructure and affordable housing projects.
  • This follows a nationwide trend of banks increasingly using long-term infrastructure bonds.
  • The rise in bond issuances aligns with the government’s significant spending on long-term projects.

This rewrite condenses the information while highlighting the key points about HDFC Bank’s fundraising and the larger trend within the Indian banking sector. Additionally, it avoids unnecessary repetition and simplifies complex financial terms for easier understanding.

I hope this rewrite is helpful! Let me know if you have any other questions.

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