HDFC Bank: Fund raising to drive loans, digitisation to be cost-efficient

The bank's focus on these areas is apparent from the fact that over 50% of its banking outlets are in rural and semi-urban areas

The Centre's approval to raise Rs 240 billion capital from foreign investors is likely to keep HDFC Bank in a sweet spot when most of its public sector peers and large private corporate lenders are facing pressure. Even the Street welcomed the move, with the stock rising by about 3 per cent following this development, versus the BSE Sensex's 1.5 per cent decline. This has taken the gains to 13 per cent so far in 2018. 

Investors are eliciting comfort from the fact that the nod came at a time when the rural economy is recovering, banking on a normal