HDFC raises $2.3b as foreign investors warm to Indian bank

It's the world's most expensive bank by book value, but overseas investors shrugged off concerns about India's banking sector and gave strong support to its dual-tranche share sale.

HDFC Bank raised Rp155 billion $2.26 billion on Wednesday in the largest ever issue of primary shares by a private sector bank in India, underscoring a revival of foreign investor interest in India’s banking sector that has long been overshadowed by weak asset quality and mounting bad debt.

The Mumbai-based lender could not have timed the share sale better, launching just as its domestic shares and American Depositary Receipts both hit new highs.

The boost in its share price saw HDFC Bank valued at around 5.2 times book value on a trailing twelve-month basis, making it the world's most expensive bank by that measure. But this did...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222