HDFC to raise Rs 4,200 crore

Mumbai, June 17 (UNI) India's second largest private lendor, HDFC Bank Ltd has approved its plan to sell Rs 4200 crore (USD 1 billion) shares.

The Bank will raise about Rs 4,200 crore to meet the credit growth targets to comply with Basel II norms. The move will help the bank increase its capital exposure as it is open to acquisition, the Bank chairman Jagdish Capoor said at its annual meeting here on Saturday.

''We expect the overall economic environment to be buoyant with the expectation that India's growth in the current year will be about 9 percent,'' Capoor said.

The bank would look at raising the capital via public offering, either in domestic or international market. Post issue HDFC would have a net worth of more than Rs 10,000 crore, which is at present having a net worth of Rs 6,433 crore.

Moreover, the sale will compete with ICICI Bank Ltd's Rs 17,500 crore share sale to local and overseas investors, with the offer opening on June 19.

DLF Ltd, property developer, recently raised Rs 9190 crore, setting up a record of India's biggest initial share sale.

UNI