HDFC Bank which stands for Housing Development Finance Corporation a leading private sector bank of India has been recognized as the 'Best Bank' by global magazine FinanceAsia for the 5th consecutive year. According to the press release issued on 20th August 2021, "the Bank was adjudged as India's top bank at the publication's Country Awards for Achievement 2021 for its industry-leading metrics in many areas."
In its editorial on the bank, FinanceAsia writes, "HDFC Bank continues to achieve industry-leading metrics in many areas and was the clear winner for another year. To put this achievement into perspective, HDFC rakes in half the revenues of industry leader, State Bank of India (SBI), but is one third more profitable. It remains India's most profitable bank. Indeed that profitability continued apace during the most recent 2021 Financial Year," the media release of the bank stated.
In its latest issue, the magazine writes - "Unsurprisingly, this meant that HDFC continues to trade at a valuation premium that only a very small handful of Asian banks are able to command. As India's most deadly Covid wave started to settle down in late spring 2021, HDFC was comfortably trading at over four times book value," according to the official announcement.
Via its Twitter handle the largest private sector bank has also said that "HDFC Bank has been adjudged as the Best Bank by global magazine FinanceAsia for the 5th consecutive year, recognized for its industry-leading metrics in many areas, at the Country Awards for Achievement 2021."
.@HDFC_Bank has been adjudged as the Best Bank by global magazine @FinanceAsia for the 5th consecutive year, recognized for its industry-leading metrics in many areas, at the Country #Awards for Achievement 2021. Read #PressRelease here: https://t.co/TI9jHyQJle.#AwardsAtHDFCBank pic.twitter.com/QfgUBPMGVX— HDFC Bank News (@HDFCBankNews) August 21, 2021
On the other hand, HDFC Bank has also raised $ 1 billion of AT1 Notes which is the largest offering by any bank from India. According to the press release "HDFC Bank had announced to raise a benchmark sized Bond Issuance under RegS/144A format. The Bank was able to successfully price its US $ 1 billion issuance of Additional Tier 1 (AT1) notes in the overseas markets on August 18, 2021. The dollar denominated, Basel III compliant AT1 notes were finally priced at 3.70 per cent, 42.5 bps lower than the initial price guidance. The issuance has been given a provisional rating of Ba3 by Moody's Rating Services. This is one of the tightest pricing achieved by any bank from Asia with Ba3 rating."
The announcement has also stated that "This will shore up HDFC Bank's already strong Tier I capital base. The offering was well received by global investors and was oversubscribed by over 3 times after the final price guidance was released. The large demand for these bonds indicates strong confidence reposed in the Brand HDFC Bank by global investors."
Mr. Ashish Parthasarthy, Treasurer of HDFC Bank said "We thank all the investors for this vote of confidence in us during the pandemic. We also thank all the banks involved in the transaction. This is a mark of the faith they have in brand HDFC Bank and its prudent and robust business model. We believe that this successful issuance will set the road for other Indian players looking to raise AT1 bonds in the overseas markets. We are confident that the recovery in the Indian economy will pick up pace, with falling caseloads and increased vaccination coverage."
According to the official press release of the bank "The said AT1 notes will be listed on The India International Exchange (IFSC) Limited. The bonds were sold to qualified institutional buyers in reliance on Rule 144A and outside the United States in offshore transactions in reliance on Regulation S. The bonds have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The closing of the bonds is subject to customary closing conditions."