Summary:
HDFC Bank shares rose around 1% after the lender raised $1.75 billion (about ₹16,700 crore) through a dual-tranche bond issue from its GIFT City branch. The fundraise is the bank’s largest overseas borrowing since 2008 and strengthens its access to international debt markets. Investor sentiment was also supported by RBI approval allowing LIC to raise its stake in HDFC Bank to 9.99%.
HDFC Bank share price rose around 1% in morning trade on Friday, August 21, extending gains for the second consecutive session after the private-sector lender announced a 1.75 billion dollar bond fundraise through its GIFT City branch. The transaction is equivalent to around ₹16,700 crore and marks the bank’s biggest overseas fundraise since the 2008 global financial crisis.
HDFC Bank shares opened at ₹728.30 against the previous close of ₹725.05 and climbed to an intraday high of ₹732.60, gaining around 1%. At around 9:30 AM, the stock was trading at ₹728, up 0.41%, while the Sensex and Nifty 50 were down 0.07% and 0.04%, respectively.
Details of HDFC Bank’s ₹16,700 Crore Bond Issue
HDFC Bank said on August 20 that its GIFT City branch had successfully completed a dual-tranche senior unsecured bond issuance. The lender raised 500 million dollars through three-year senior unsecured notes and 1.25 billion dollars through five-year notes.
The three-year bonds carry a coupon of 5.159%, while the five-year bonds carry a coupon of 5.401%, with interest payable semi-annually. Both tranches are scheduled to settle on August 26. The three-year bonds will mature on August 26, 2029, while the five-year notes will mature on August 26, 2031.
The three-year bonds were priced at 88 basis points over US Treasuries, while the five-year bonds had pricing guidance of 100 basis points over US Treasuries.
Latest Developmements: LIC with approval from RBI increases stake in HDFC
Why HDFC Bank Stock Rose After the Fundraise
The bond issuance has supported sentiment around HDFC Bank as it strengthens the lender’s access to international debt markets and provides additional funding for its growth requirements. The fundraise also comes as Indian banks tap overseas debt markets amid the Reserve Bank of India’s concessional swap window for external commercial borrowings, available until the end of 2026.
Other lenders, including IDFC First Bank and Kotak Mahindra Bank, have also raised funds through overseas bonds recently.
The positive reaction was also supported by the RBI’s August 19 approval allowing LIC to increase its holding in HDFC Bank to up to 9.99% from 4%. LIC held 4.11% as of August 14.
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HDFC Bank Q1 FY27 Performance
HDFC Bank reported standalone net profit of ₹19,059.72 crore for Q1 FY27, up 4.98% year-on-year. Net interest income increased 6.7% to ₹33,535.95 crore. Net interest margin stood at 3.26% on total assets and 3.40% on interest-earning assets.
Gross NPA stood at 1.17% as of June 30, compared with 1.15% in March and 1.40% a year earlier, while net NPA stood at 0.41%.
