HDFC Bank meet on Oct 21 on ADS

HDFC Bank board will meet on October 21 to discuss a proposal to raise capital through American depositary shares (ADS). This will be the new generation private bank's second ADS issue.

It had raised $ 150 million in July 2001 at $ 13.83 per ADS on the New York Stock Exchange. ICICI Bank was the first Indian bank to have floated an ADS issue.

The bank floated the ADS in March 2000. HDFC Bank officials refused to comment on the size of the issue. According to market sources, the bank is set to raise about $200 million through its issue.

Another new generation private bank, UTI Bank, is also planning to tap the market with its maiden ADR issue in the current fiscal. P J Nayak, managing director, UTI Bank, said the bank board will meet to discuss the issue of capital raising.

The bank will tap the market in the current fiscal. However, the size of the issue is not yet finalised, he added.

Foreign institutional investors hold 53.96 per cent stake in HDFC Bank. Parent HDFC holds 13.59 per cent and HDFC Investment holds 10.50 per cent.

The public holding in the bank is 15.12 per cent. On the Bombay Stock Exchange today, the HDFC Bank scrip ended down 0.22 per cent at Rs 402.

The bank's net profit in the first quarter of 2004-05 rose by 31 per cent to Rs 139.97 crore against Rs 107.28 crore in the corresponding quarter last fiscal. It earned a total income of Rs 810.6 crore (Rs 709.3 crore).

Net revenues were Rs 5,068 crore up 23.7 per cent from Rs 409.9 crore for the corresponding quarter last fiscal. The bank's CAR stood at 11 per cent and net NPAs at 0.2 per cent of its total advances.