India’s most valuable bank , HDFC Bank, plans India’s largest perpetual debt offering.
HDFC Bank Ltd. is India’s most valuable bank. It is planning to offer perpetual debt. The bank seeks to bolster its capital after missing a world-beating streak of profit growth which had lasted two decades.
The bonds carry a coupon of 8.85 percent. This is the lowest pricing on such debt issued by any Indian lender in 2017.
This shows that “the management is confident of spurring loan growth.” This according to Diksha Gera, a Bloomberg Intelligence analyst in Singapore.
HDFC Bank has had the lowest bad-loan ratio among top Indian banks. This coupled with fast lending growth had helped the bank report annual profit growth of more than 20 percent in the two decades. This is a feat unmatched by any of the world’s 200 biggest lenders.