Srinagar: HDFC Bank limited welcomes the government’s approval for its proposed capital raising of Rs. 24,000 crore.

This decision comes against the backdrop of an expected pick-up in credit growth driven by consumption-led demand and a recovery in the investment cycle.

“We are delighted to hear that the government has approved our capital raising proposal. The additional capital will go a long way in supporting our growth plans over the next few years, especially in semi-urban and rural India,” said Paresh Sukthankar, Deputy Managing Director, HDFC Bank Ltd. 

“We do believe this decision bodes well for the overall investment climate and foreign inflows as well,” Sukthankar added. 

As this was an FDI proposal in excess of Rs 5,000 crore not under the automatic route, it required approval from the Cabinet Committee on Economic Affairs (CCEA).

The government granted this approval on Monday and said “as of March 31, 2018 the Bank had a network of 4,787 branches and 12,635 ATMs and had 4.3 crore customers across 2,691 Indian towns and cities. The Bank’s balance sheet for the year stood at Rs 10.63 lakh crore”.