Govt allows HDFC to raise Rs. 24,000 crore

HDFC Bank's FDI proposal to raise Rs. 24,000 crore received a green signal from the government's Cabinet Committee on Economic Affairs (CCEA).

The government affirmed the condition that the composite foreign shareholding in HDFC Bank should not exceed 74 per cent of the enhanced paid-up equity share capital of the institution.

An expected pick-up in credit growth is behind the fund-raising exercise. This capital will support the bank's growth plan in the upcoming years, especially in the rural region.

HDFC Bank has a network of 4,787 branches and 4.3 crore customers. The bank’s balance sheet was at Rs. 10.63 lakh crore as on March 31, 2018.

Meanwhile, the stock of HDFC Bank moved in-line with the banking sector. The stock of HDFC Bank closed at Rs. 2037.15 per share, down by 0.09 per cent on Thursday. The stock opened at Rs. 2,038.00 per share, and hit a high of Rs. 2,045.00 and low of Rs. 2,030.00.