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HDFC Bank dismisses Rs 13,000 cr fundraising plan reports as 'baseless, speculative'

The reports are "purely baseless and speculative", the country's largest private sector lender clarified in an exchange filing

HDFC Bank dismisses Rs 13,000 cr fundraising plan reports as 'baseless, speculative'

HDFC Bank said that reports are "purely baseless and speculative".

HDFC Bank on Monday dismissed reports that it plans to raise Rs 13,000 crore via qualified institutional placement (QIP) plus issuance of American Depository Receipts (ADRs). The reports are "purely baseless and speculative", the country's largest private sector lender clarified in an exchange filing.

"As a policy, the Bank does not comment on speculation/ rumours circulating in the market/ print/ online media. The Bank has complied with and continues to comply with the relevant disclosure norms under the Regulations," HDFC Bank also said.

It was in 2018 that the private lender last raised capital. HDFC Bank then raised Rs 8,500 crore through preferential allotment of 39.1 million shares to HDFC Limited. It also raised Rs 2,775 crore via QIP of 12.85 million shares and $1.82  billion through an ADR issuance.

Shares of HDFC Bank were trading at Rs 1,061.70, up 6.10 points, or 0.58 per cent on NSE.

Meanwhile, in Q4 of FY20, the lender reported a 17.7 per cent rise in standalone net profit to Rs 6,928 crore against  Rs 5,885 crore profit in the year-ago period. Provisions rose to Rs 3,784.5 crore in Q4 against Rs 3,043.6 crore in the previous quarter and Rs 1,889 crore in the year-ago period.

HDFC Bank reported 15.4 per cent rise in Q4 consolidated net profit at  Rs 7,280.22 crore, up from Rs 6,300.81 crore a year ago. Consolidated total income in Q4 of FY20 rose to Rs 38,287 crore, from  Rs 33,260.48 crore in the year ago quarter. HDFC Bank said it has made additional provisions of Rs 1,550 crore due to coronavirus impact.

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