HDFC Bank Said to Start $1.6 Billion Share Sale to Boost Capital

HDFC Bank Ltd., India’s biggest lender by market value, started the sale of about 100 billion rupees ($1.6 billion) of shares Wednesday in Mumbai, people with knowledge of the matter said.

The Mumbai-based bank is seeking to raise the funds through a sale of American depositary receipts and issue of shares to institutional investors in India, the people said, asking not to be identified because the information is private.

Proceeds from the share sale will help HDFC Bank boost lending in the reviving South Asian economy. The bank, led by Managing Director Aditya Puri, had a capital adequacy ratio of 15.7 percent at the end of September and a gross bad-loan ratio of 1 percent, exchange filings show.

Bank of America Corp., Barclays Plc, Credit Suisse Group AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, Nomura Holdings Inc. and UBS Group AG are arranging the ADR sale, while JM Financial Ltd. is among banks working on the Indian offering, the people said. Neeraj Jha, a spokesman for HDFC Bank, didn’t respond to multiple calls to his mobile phone and an e-mail seeking comment.

Shares of HDFC Bank gained 0.3 percent to 1,067.70 rupees in Mumbai today, extending this year’s advance to 12 percent.

Before it's here, it's on the Bloomberg Terminal.