HDFC To Infuse Rs 4,000cr To Keep Up Stake In HDFC Bank

MUMBAI: Housing Development Finance Corporation will infuse over Rs 4,000 crore in HDFC Bank to maintain its shareholding in the leading private sector lender, following its proposed amalgamation with the Centurion Bank of Punjab. The board of directors of HDFC Bank had earlier said that in the event of the amalgamation with Centurion Bank of Punjab, it would consider making a preferential offer to its promoter, Housing Development Finance Corporation Ltd, to enable HDFC to maintain its shareholding percentage in the bank. On February 23, HDFC Bank and Centurion Bank of Punjab had accorded, in principle, to merge to create the country''s largest private sector financial institution in terms of branch network. The Board of Directors at its meeting approved the draft scheme of amalgamation and the merger pact and reaffirmed the share swap ratio and the issuance of one equity share of Rs 10 each of the HDFC Bank for every 29 equity shares of Re 1 each held in Centurion Bank of Punjab Ltd.

HDFC Bank To Mop Up $1 Bn For Offshore Expansion

Mumbai: HDFC Bank Ltd is looking at offloading around $1 billion of medium-term notes to finance its expansion overseas. HDFC plans to set up its first branch abroad, in Bahrain, within a few months. Additionally, the bank plans to open new offices in London and Hong Kong. HDFC Bank joins rivals such as ICICI Bank and Bank of Baroda in expanding overseas to track local companies including Tata Steel, Hindalco Industries and Indian Hotels, which are acquiring foreign competitors.

Standard & Poor''s on Feb 21 gave a BBB- rating, its lowest investment grade, to the senior debt portion of the proposed notes. It assigned BB+, the highest non-investment grade rating, to the lower tier-2 subordinated debt and rated the upper tier-2 and hybrid tier-1 notes a step lower at BB. The bank hasn''t set the final structure of the debt. HDFC Bank''s 754 branches issued about half its Rs 71,400 crore ($17.8 billion) of outstanding loans to individual borrowers as of December 2007. The bank routes home mortgage loans on behalf of its promoter, Housing Development Finance Corporation, which owns a fifth of the commercial lender.

HDFC MF Ties Up With South Indian Bank

To enhance its distribution reach, HDFC Mutual Fund has entered into a strategic alliance with South Indian Bank to distribute its mutual fund schemes across India. As per the agreement, South Indian Bank will offer the entire bouquet of HDFC Mutual Fund products at its select 100 branches across the country. Dr.V.A.Joseph, Chairman & CEO, South Indian Bank and Mr. Milind Barve, Managing Director, HDFC AMC, made this joint announcement in Mumbai at the Exchange of Documents event. Speaking on the occasion Dr. V.A.Joseph, Chairman and CEO of South Indian Bank said SIB with 100% CBS branches across the country will add this new kitty in our financial supermarket for the benefit of our customers. This relationship should help the bank to add more fee based income which ultimately increases shareholder value.

HDFC Mutual Fund has set the objective of enhancing its customer base by providing a range of mutual fund products and superior customer service. The broad network of South Indian Bank is ideally positioned to provide us the required distribution platform. Mutual Funds as an investment option is not widely understood and therefore under owned and our partnership with South Indian Bank will help us to spread the knowledge and understanding of Mutual Fund Products.