HDFC Bank secures $750 mn from GIFT City IFSC

HDFC Bank has secured $750 million from the GIFT City International Financial Services Centre (IFSC) in Gandhinagar, Gujarat, to support its business expansion. The funding was obtained via senior unsecured bonds denominated in US dollars, as disclosed in a regulatory filing by HDFC Bank. The size of the issue of USD denominated senior unsecured bonds is $450,000,000 and the size of the issue of USD denominated senior unsecured sustainability bond is $300,000,000, the bank adds.

The duration of the instrument, spanning from the date of allotment to the date of maturity, is five years, with settlement occurring on February 15, 2024, and maturity on February 15, 2029, the bank states.

The lender says the profits generated from issuing these bonds will be directed towards environment friendly and socially beneficial projects, aligning with the stipulated criteria outlined in HDFC Bank's Sustainable Finance Framework.

HDFC Bank shares dipped marginally by 0.9% to ₹1,432.85 on the BSE today.

HDFC Bank's Q3 profit surged 33.5% year-on-year to ₹16,370 crore for the October-December quarter of FY 2023-24, compared to ₹12,259 crore in the same period last year. The bank's net interest income also grew 23.9%, rising to ₹28,470 crore from ₹22,990 crore in the previous year. The bank experienced a surge in net revenue, which escalated by 25.8% to ₹39,610 crore for the quarter ending December 31, 2023, compared to ₹31,490 crore in the year-ago period.

The core net interest margin was at 3.4% based on total assets and 3.6% based on interest-earning assets. The bank's "other income" amounted to ₹11,140 crore during the quarter, marking an increase from ₹8,500 crore in the previous year's quarter. Operating expenses stood at ₹15,960 crore, up 28.1% from ₹12,460 crore in the same quarter of the previous year, resulting in a cost-to-income ratio of 40.3% for Q3 FY24. As of December 31, 2023, the bank's total balance sheet amounted to ₹34,92,600 crore, compared to ₹22,95,300 crore as of December 31, 2022.

The bank’s total deposits reached ₹22,14,000 crore, reflecting a year-on-year increase of 27.7% as compared to December 31, 2023. The CASA (Current account and savings account) deposits grew 9.5%, comprising savings account deposits of ₹5,79,900 crore and current account deposits of ₹2,55,800 crore. In terms of consolidated financial performance, HDFC Bank's net profit surged by 35.9% year-on-year to ₹17,260 crore, while net revenue soared by 113.5% to ₹71,770 crore from ₹33,620 crore in the year ago period.