HDFC Bank

The Reserve Bank of India approved Life Insurance Corporation of India's application to acquire an aggregate holding of up to 9.99% in HDFC Bank. LIC held 4.11% of the bank's paid-up share capital as of 14 August 2026. The approval was subject to banking, foreign-exchange, securities-market and other applicable regulatory requirements. HDFC Bank reported deposits of ₹31,708bn and gross advances of ₹30,608bn in the first quarter of FY27.

Powered by Tijori

By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, Aug 17 (Reuters) - Indian lenders are rushing dollar loan and bond issues over the next two weeks after the central bank unexpectedly advanced the end date for an FX swap facility that banks were using for hedging exposure to deposits raised from diaspora.

As part of a raft of measures to boost inflows, lenders were permitted to use these overseas borrowings to offer loans to non-resident Indians. Banks' overseas fundraising had also been subsidised.

Now, with the Reserve Bank of India announcing the closure of the forex swap window for August 31, a month earlier than initially planned, Indian private and state-run banks are on track to raise at least $5 billion through a combination of bonds and loans, four bankers said.

"Some of the fund raising plans have been brought forward to utilize the last few days," Akshay Naik, India head of debt capital markets at Citi, said.

"We will have one of the busiest windows for the next 6-8 days from India. Few institutions who are not ready may need to drop their plan if it was solely meant for FCNR leverage."

Large private-sector lenders such as ICICI Bank ICBK.NS and HDFC Bank HDBK.NS are in talks to raise about $1.5 billion each via dollar bonds and loans, while peers including Axis Bank AXBK.NS, YES Bank YESB.NS, RBL Bank RATB.NS and Kotak Mahindra Bank KTKM.NS are planning to raise at least $500 million each through overseas debt markets, bankers said.

State-run lenders State Bank of India SBI.NS, Bank of Baroda BOB.NS, Punjab National Bank PNBK.NS, Canara Bank CNBK.NS, Union Bank of India UNBK.NS, Bank of India BOI.NS and Central Bank of India CBI.NS are targeting dollar raises of $250 million to $500 million each, with the larger banks likely to target bigger issues, the bankers said.

None of the lenders replied to Reuters emails seeking comment.

All the bankers declined to be named as the discussions are private.

BANKS ON TRACK FOR RECORD DOLLAR FUNDRAISING

Indian lenders have raised a combined $5.93 billion through dollar bond sales and loans so far this year, according to LSEG data through August 11.

The tally has climbed by another $1.2 billion, following debt sales by two large state-run lenders last week.

Over the last 15 years, banks' annual foreign borrowing topped $6 billion on three occasions, including in 2013, when the RBI had opened a swap window.

"Would expect $5-7 billion of additional bond and loan issuances for the remainder of year," Naik said.

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected]; [email protected]))

By Dharamraj Dhutia

MUMBAI, Aug 12 (Reuters) - State Bank of India SBI.NS, the country's largest lender, drew strong demand in its return to the public dollar bond market after nearly a year, with pricing tightening sharply from initial guidance, three merchant bankers said on Wednesday.

SBI raised $500 million through a five-year dollar bond issued via its London branch, the lender said in a stock exchange filing late on Tuesday.

These bonds will be priced at a spread of 88 basis points over U.S. Treasuries, sharply below initial guidance of 120 bps. The notes carry a coupon of 5.25%, payable semi-annually.

The final spread was broadly in line with CreditSights' expectation of 90 basis points, although the research firm expects it to tighten further to around 80 basis points in the secondary market.

Spreads on dollar bonds issued by Indian borrowers have widened in recent weeks on expectations of heavy supply following the Reserve Bank of India's swap concession window, while demand has been tempered by attractive rates on foreign-currency deposits.

"As we had anticipated, some of this spread premium has begun to fade as supply is absorbed... We have an outperform recommendation on SBI," CreditSights analysts said in a note.

The lender witnessed tightest pricing, after ICICI Bank sold notes at 100 bps, while HDFC Bank sold notes at a spread of 90 bps over Treasuries.

SBI had planned to raise $1 billion through a public dollar bond issue in June, but deferred the sale due to higher borrowing costs following heavy issuance by Indian lenders.

The bank subsequently raised $600 million through a private placement of three-year dollar bonds at a spread of 100 basis points over the Secured Overnight Financing Rate (SOFR).

The issue comes at a time when Indian banks are making a beeline for dollar issues after the RBI's swap facility announced in June made overseas borrowing cheaper.

Large private lenders, including HDFC Bank, Axis Bank and ICICI Bank have raised funds through dollar bonds in June and July.

Meanwhile, bankers expect SBI to tap the market again in a few weeks for raising dollars, as the board has approved raising of up to $2 billion through bonds sold in dollar or any other major currency in this financial year.

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Aug 11 (Reuters Breakingviews) - That Indian banks would sport higher book value multiples than their Western peers used to be almost as reliable as the sun coming up in the morning. Even after a lending crisis last decade, the country retained the lead, with $118 billion HDFC Bank HDBK.NS often at the front. Not any longer. A resurgence of players like HSBC HSBA.L and JPMorgan JPM.N as well as the rise of India’s capital markets have both landed blows on the sector. In HDFC’s case, its own governance and margin woes have completed a triple whammy.

The Mumbai-based bank run by Sashidhar Jagdishan currently trades at less than 2 times its estimated book value 12 months from now, per LSEG data. A few years ago, most developed-market peers could only dream of such a level. Now, thanks to resurgent earnings and, in the U.S. at least, a regulatory proposal to cut capital requirements, they sport book multiples most have not worn since the 2008 financial crisis. JPMorgan’s, for example, is now at 2.5 times; the new king of the metric is $206 billion Commonwealth Bank of Australia CBA.AX at 3.7 times.

Meanwhile, many Indian banks are struggling to hoover up low-cost deposits as savers look for higher yields in the stock market. That’s hurting net interest margins, with HDFC’s and Axis Bank's expected to fall again this financial year, per estimates collated by Visible Alpha. Industry-wide bank deposits dropped to around one-third of household financial savings in the 13 years to the end of March 2025, while equity and mutual funds grew sevenfold to over 15%, government data show.

HDFC, though, has also shot itself in the foot. In 2020 the Reserve Bank of India barred it from issuing new credit cards after recurring online shutdowns. A 2023 merger with its mortgage-lender parent failed to live up to its promise. In March its chair resigned citing ethical differences with management. Last month the board fined top executives including Jagdishan for improprieties in deposit pricing while exonerating their actions as "business overreach". The successive crises reflect poorly on Aditya Puri, HDFC's Managing Director and CEO from its inception in 1994 until 2020.

It’s not alone. The $41 billion Kotak Mahindra Bank KTKM.NS trades at 2.5 times forward book value that’s half its 2019 peak, having been beset by a poorly handled leadership transition and business restrictions akin to HDFC's.

Lifting those curbs has done little for either firm’s valuation. Not all the country’s lenders are suffering from valuation blues: $107 billion ICICI Bank ICBK.NS has undergone a successful turnaround and trades at nearly 3 times book. But HDFC’s path back to the top has too many obstacles.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

HDFC Bank on July 27 said it would issue warning letters and impose a penalty of 100,000 ​rupees ($1,045.51) each on CEO Sashidhar Jagdishan, its chief financial officer ​and its head of retail assets for their role in offering preferential deposit rates to a state agency.

The bank's board concluded that its executives involved in setting deposit rates for the agency ​had engaged in business overreach, rather than acting for ‌personal gain.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

By Bharath Rajeswaran

Aug 7 (Reuters) - India's market outlook is strengthening as bank credit growth reaches its fastest pace in more than a decade, foreign equity inflows return and central bank measures support the rupee, according to Jefferies.

"There are some positives to be aware of as regards the Indian domestic story," Christopher Wood, Jefferies' global head of equity strategy, said in his latest GREED & fear note published on Friday.

Against this backdrop, Jefferies has reshaped its India long-only portfolio. HDFC Bank HDBK.NS, India's largest private lender and the heaviest stock in benchmark indexes, is being removed alongside PolicyBazaar-owner PB Fintech PBFI.NS.

MCX MCEI.NS and Lenskart Solutions LENS.NS will replace them, while REC RECM.NS makes way for Bajaj Finance BJFN.NS. Eternal's ETEA.NS allocation rises by one percentage point, funded by a reduction in Bharti Airtel BRTI.NS.

Foreign investors bought a net $2.12 billion of domestic equities in July as India benefited from the unwind out of the memory chip trade. However, they remain net sellers for the year, with outflows totaling $25.86 billion, according to National Securities Depository.

The more important signal, Wood said, is the acceleration in domestic lending, which has climbed to 17–18% year-on-year, led by corporate lending of about 20%. Loans to agriculture and retail borrowers are also expanding at healthy rates, underscoring broad-based demand.

Policy-driven inflows are adding a macro cushion. The Reserve Bank of India's foreign-currency inflow scheme, including non-resident deposits, external commercial borrowings and foreign-currency bonds, had mobilized about $41 billion by the end of July, and Jefferies expects inflows to reach $80 billion–$100 billion by the September 30 deadline.

The removal of tax on interest income on foreign purchases of government bonds has also generated $8.7 billion in net inflows since early June, per exchange data.

"All this increases the likelihood that the rupee should stabilise," Wood said. The currency recovered to 95.17 per U.S. dollar, as of July 31, from a low of 96.96 in May.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)

(([email protected]; +91 9769003463;))

By Vivek Kumar M

Aug 5 (Reuters) - India's benchmark Nifty 50 .NSEI has swung sharply following the launch of a new method for calculating closing prices for stocks with derivatives contracts.

The volatility triggered a rare divergence with the BSE Sensex .BSESN for a third straight session on Wednesday and led to heavy losses for traders.

The Nifty 50 is a 50-stock blue-chip index, with HDFC Bank HDBK.NS, ICICI Bank ICBK.NS and Reliance Industries RELI.NS accounting for more than 27% of its weight. The Sensex comprises 30 stocks, all of which are also part of the Nifty 50.

WHAT IS THE NEW METHOD TO DETERMINE CLOSING PRICE?

India on Monday introduced the Closing Auction Session (CAS), a separate 20-minute window that begins at 3:15 p.m. IST after regular trading ends in eligible stocks.

During this window, exchanges collect buy and sell orders. Order entry closes at a random time between 3:28 p.m. and 3:30 p.m. IST, after which trades are matched to determine the closing price at which the maximum volume can be executed.

The new system replaces an earlier method under which closing prices were based on the average price of trades executed in the final 30 minutes of continuous trading. Stocks without futures and options contracts continue to use the old method.

WHY HAS THE NEW METHOD TRIGGERED DIVERGENCES BETWEEN THE NIFTY AND THE SENSEX?

The National Stock Exchange of India said the two bourses maintain separate order books, which means individual stock prices can differ between exchanges, leading to a divergence in indexes closing levels.

In regular trading, dealers have access to bid and offer prices, while the new mechanism does not offer that visibility in the last 20 minutes of trading.

The divergence could also stem from the varying weightages of individual stocks across the two indexes, with the NSE drawing substantially higher institutional volume in the cash market than BSE.

WHY WAS CAS INTRODUCED?

The new process, which brings India closer to how global markets operate, was introduced to provide a fair and transparent closing price, and improve the efficiency of execution for large orders.

WHAT HAPPENED ON TUESDAY

The sharp jump in the Nifty 50 at Tuesday's close, coinciding with the expiry of its weekly derivatives contracts, caused sudden swings in options premiums.

The move left some traders nursing losses, with several saying the 20-minute closing auction gave them little visibility on where the Nifty 50 would settle.

WHEN WILL THE DIVERGENCES IN INDEX CLOSE PRICES END?

Market participants expect the gap to narrow as more traders and institutions participate. Kotak Mutual Fund said in a note to investors that it expects pricing inefficiencies to ease as the market adjusts to the new system.

"While the initial days may witness valuation volatility and temporary price dislocations, we expect market behaviour to normalize over time as participants adapt to the new framework," it said.

Reuters reported on Wednesday that the regulator was unlikely to review the system immediately and expects issues to settle soon.

WINNERS AND LOSERS

Arbitrage funds, which hold positions in both the cash and futures markets, were among the biggest beneficiaries of the unexpected jump in closing prices.

As cash market prices surged while futures prices lagged, a clear arbitrage opportunity emerged.

Many retail traders, meanwhile, were caught off guard by the sharp price swings and incurred losses.

(Reporting by Vivek Kumar M; Editing by Jayshree P Upadhyay and Nivedita Bhattacharjee)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Aug 4 (Reuters Breakingviews) - India's banks may need to take some lessons in layoffs from Wall Street. Staffing levels at HDFC Bank HDBK.NS, ICICI, Axis AXBK.NS and Kotak Mahindra KTKM.NS fell by up to 4% during the 12 months to the end of March after years of increases. It's largely the result of businesses maturing, revenue growth slowing and more tasks getting automated. Goldman Sachs GS.N, Morgan Stanley MS.N and others routinely dump more. But India generally frowns on making people redundant. AI is likely to force its financial services firms – and others – to look past the taboo and embrace deeper cuts.

Western lenders and investment banks tend to slash their ranks when a downturn hits. But some, like Goldman, also oust those performing poorly – as much as 5% of employees – each year. By that metric, their Indian peers are only dabbling. Moreover, natural attrition seems to account for most, if not all, of the reductions.

That does the job for now as the businesses weaken somewhat. Total revenue at $41 billion Axis for the financial year to the end of March grew at nearly a quarter of its pace the previous year, while Kotak's fell slightly. Yet the compensation ratio for both, and for $122 billion HDFC, stayed flat, suggesting the softly-softly downsizing is working, Breakingviews calculates, using data disclosed by the lenders. Increased outsourcing of tasks like loan collection and IT management weighs on headcount too.

The rise of automation, though, whether due to AI or less advanced technology, is likely to increase pressure to reduce staff numbers. A substantial share of new business, for example, now comes from attracting new retail customers digitally, reducing the need to keep expanding and staffing branches. And AI capabilities are making humans increasingly redundant at routine functions like fraud monitoring and data analysis.

At Axis Bank, where staff numbers fell 3%, CEO Amitabh Chaudhry has set targets that include using AI to automate and augment half of its customer calls in the current financial year. HDFC, which reported a 2% workforce reduction, is applying AI to retail credit decisions and trade transactions.

As banks commit to adopting AI across a growing chunk of their operations, more job functions will have to go, though they are likely to find more productive jobs for some. The impact will eventually show up at government-owned lenders like State Bank of India SBI.NS and intensify a slow-burn shrinkage underway there for years.

Their executives are likely to rely on natural attrition, retirements and reduced hiring for as long as possible. But the bigger the impact of AI and the more their businesses mature, the greater the chance that they will have to follow Wall Street's lead by breaking with convention to give more people the boot.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank reported an up to 4% year-on-year fall in their employee counts as of March 31.

In its annual report for the 12 months ended March, released on July 11, HDFC said the number of permanent employees on its rolls stood at 211,178, 2% lower than the level as on March 31, 2025. ICICI's filings show a 4% fall in the metric to 124,029, while Axis and Kotak reported declines of 3% and 1% respectively.

(Editing by Antony Currie; Production by Aditya Srivastav and Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Aug 3 (Reuters) -

• S&P: HDFC BANK'S SENIOR UNSECURED NOTES RATED 'BBB'

• S&P: 'BBB' LONG-TERM ISSUE RATING TO $20 MILLION FLOATING RATE SENIOR UNSECURED NOTES DUE 2031 ISSUED BY HDFC BANK'S GIFT CITY BRANCH

Further company coverage: HDBK.NS

(([email protected];;))

00 ** Macquarie says completion of HDFC Bank's HDBK.NS review of employees involved in settling deposit rates for a state agency removes a major pending issue and provides regulators with a definitive factual assessment

** Brokerage says the distinction between commercial overreach and misconduct is important and supports a constructive interpretation of the findings

** HDBK has faced investor scrutiny since mid-March when its former chairman Atanu Chakraborty resigned abruptly; stock down ~13% since

** Macquarie expects the reappointment process to progress in the coming weeks and says Jagdishan retains a decent chance of securing a three-year extension from the board and RBI

** HDBK down 0.3% at 737.35 rupees on Tuesday

** Macquarie maintains its "outperform" rating on stock with PT of 1,150 rupees

** YTD, HDBK down 25.7% vs Nifty 50's .NSEI 8.1% drop

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

July 27 (Reuters) - HDFC Bank Ltd HDBK.NS:

• HDFC BANK - CONCLUSION OF AN INTERNAL REVIEW PROCESS PERTAINING TO THE ARRANGEMENT WITH MAHARASHTRA STATE ROAD DEVELOPMENT CORPORATION

• HDFC BANK - CONCLUDED THAT CONDUCT OF EMPLOYEES INVOLVED CONSTITUTED BUSINESS OVERREACH RATHER THAN MALA FIDE ACTION, PERSONAL ENRICHMENT OR IMPROPER MOTIVE

• HDFC BANK - THE BOARD FURTHER DIRECTED THAT THE MATTER BE COMMUNICATED TO THE RESERVE BANK OF INDIA

• HDFC BANK- ISSUE WARNING LETTERS AND MONETARY PENALTY OF 100,000 RUPEES FOR 3 SENIOR EMPLOYEES AND WARNING LETTERS FOR REMAINING EMPLOYEES

Further company coverage: HDBK.NS

(([email protected];))

** Shares of HDFC Bank HDBK.NS drop about 9% for the week, on track for their worst week since January 2024

** Drop after India's top private lender's Q1 results on Saturday disappointed investors on margin woes

** Stock down 0.2% at 746.05 rupees on the day

** HDBK biggest weekly loser on banks index .NSEBANK and benchmark Nifty 50 .NSEI, which are down 3.1% and 2.2%, respectively

** Avg rating of 39 analysts on HDBK at "strong buy"; median PT is 1,017.50 rupees - LSEG-compiled data

** YTD, stock down about 25%, underperforming banks index's 4.8% drop and Nifty 50's about 9% fall

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

By Dharamraj Dhutia

MUMBAI, July 23 (Reuters) - India's ICICI Bank ICBK.NS has provided an initial price guidance for a five-year dollar bond leveraging the central bank's lower-cost hedging facility, as the private lender returns to the dollar debt market after nearly nine years, two bankers aware of the matter said on Thursday.

The lender is expected to raise at least $500 million through this issue and has provided guidance of a spread of 130 basis points over the corresponding U.S. Treasury yield, the bankers added, requesting anonymity as they are not authorised to speak to the media.

The lender updated its Global Medium Term programme on Wednesday and immediately started the process of raising funds.

ICICI Bank did not immediately respond to a Reuters request for comment.

"The bank should finalise the pricing before the end of Friday, and we are expecting at least 30 bps of a compression from the initial guidance," one of the bankers said.

The transaction would mark ICICI Bank's first dollar bond issuance since December 2017, when it raised $500 million through 10-year bonds at a coupon of 3.80%.

CreditSights has a market perform recommendation on ICICI Bank's dollar bonds.

The Reserve Bank of India last month introduced a swap facility allowing eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually.

The measure significantly lowers hedging costs, making overseas dollar fundraising more attractive.

The nation's second-largest private bank will join peers HDFC Bank and Axis Bank, which raised $750 million through five-year bonds and $800 million via a dual-tranche dollar bond issue in June.

The proceeds from the issue would be used for general corporate purposes, the bankers added.

The offering will be rated Baa3 by Moody's and BBB by S&P Global, in line with the issuer, and would be sold through its GIFT City branch.

(Reporting by Dharamraj Dhutia; Editing by Rashmi Aich)

(([email protected];))

MUMBAI, July 22 (Reuters) - India's HDB Financial Services HDBF.NS accepted bids worth 4 billion rupees ($41.4 million) for the reissue of 8.2301% July 2029 bond, three bankers said on Wednesday.

The firm will offer a yield of 7.75%, and had invited commitment bids for the issue earlier in the day, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on July 22:

*Size includes base plus greenshoe for some issues

($1 = 96.5650 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

(([email protected], [email protected]))

** Shares of HDFC Bank HDBK.NS drop 1% to 769.8 rupees, extending Monday's decline

** HDBK is awaiting the outcome of an additional review being conducted by its independent directors before it makes a recommendation to reappoint CEO Sashidhar Jagdishan to India's central bank, Reuters reported citing sources

** HDFC Bank spokesperson did not respond to Reuters request for comment

** Lender has faced investor scrutiny since mid-March when its former chairman Atanu Chakraborty resigned abruptly

** Stock down 9.2% since March 18, when Chakraborty resigned

** Stock fell 5.1% on Monday after Q1 margins disappointed investors

** YTD, HDBK down 22.4% vs Nifty 50's .NSEI 7.3% drop

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

By Gopika Gopakumar and Jayshree P Upadhyay

MUMBAI, July 20 (Reuters) - HDFC Bank HDBK.NS is awaiting the outcome of an additional review being conducted by its independent directors before it makes a recommendation to reappoint its CEO Sashidhar Jagdishan to India's central bank, three sources told Reuters.

HDFC has faced investor scrutiny since mid-March when its former chairman Atanu Chakraborty resigned abruptly saying practices at the bank were not in line with his "personal ethics". An external legal review completed last month found no evidence to substantiate the governance concerns he raised.

A bank spokesperson had no immediate response when contacted by Reuters for comment from HDFC and Jagdishan on the additional inquiry, which has not been previously reported.

During a post-earnings call on Saturday, HDFC management said the CEO succession process remained a "work in progress".

HDFC's board has yet to approve its recommendation to reappoint Jagdishan, whose term ends in October. Reserve Bank of India (RBI) rules require a bank board to apply for the reappointment of a CEO or submit fresh names for the position six months before a chief executive's term ends.

In a rare comment, the RBI said in March that based on its periodic assessments, there were "no material concerns on record as regards its conduct or governance".

ADDITIONAL REVIEW BY INDEPENDENT DIRECTORS

The sources, who are directly familiar with the matter, told Reuters the delay is due to an additional review being conducted by independent board directors. The sources declined to be named because they are not authorised to speak to the media.

This review is looking into media reports in May which said that HDFC offered preferential rates on certain large deposits, which is not permitted under RBI rules, the sources said.

An HDFC spokesperson told Reuters then in response to the reports that the bank has robust internal oversight, audit and control processes and systems.

"The board committee will take a final call on proposing Jagdishan for reappointment after the independent directors submit the findings of the review," said one source, while a second said it is likely to be completed in early August.

The review has not so far indicated any wrongdoing, two of the three sources said.

Management continuity remains the biggest overhang over HDFC's share price, which has underperformed since March 18.

HDFC shares, the largest constituent of both the Nifty 50 and Sensex indices, have fallen 7.4% since Chakraborty's resignation, compared with a 4.6% gain in the Nifty Bank index.

"We believe that (the) bank's re-rating is contingent on resolution of (the) top management saga," Nuvama Institutional Equities, a brokerage firm in India, said on Monday.

(Reporting by Gopika Gopakumar and Jayshree P Upadhyay in Mumbai; Editing by Alexander Smith)

(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))

BENGALURU, July 15 (Reuters) - Indian non-bank lender HDB Financial Services HDBF.NS posted a higher first-quarter profit on Wednesday, supported by healthy loan demand.

Net profit rose about 48% to 7.85 billion rupees ($81.55 million) for the quarter ended June 30, from 5.31 billion rupees a year earlier.

($1 = 96.2550 Indian rupees)

(Reporting by Nishit Navin and Surbhi Misra in Bengaluru)

(([email protected];))

By Bharath Rajeswaran

July 7 (Reuters) - Foreign investors are returning to Indian financial stocks, with the sector drawing its biggest fortnightly inflows in 14 months in the second half of June as policy support , lower valuations and expectations of steadier earnings lifted demand.

Foreign portfolio investors bought 146.34 billion rupees ($1.54 billion) of banking stocks over the period, National Securities Depository data released on Tuesday showed.

FPIs turned net buyers of Indian equities in the second half of June, following four months of selling, with overall inflows of 141.09 billion rupees.

The inflows mark a turnaround after record foreign outflows from Indian markets earlier this year, when investors shifted money into artificial intelligence- and chip-related stocks in Taiwan and South Korea.

In June, the Reserve Bank of India extended a subsidised forex swap facility for lenders' overseas borrowings and said banks could lend to non-residents against foreign currency deposits.

Citi Research said the swap could help banks narrow loan-to-deposit gaps, lower new deposit costs and improve margins.

The government also moved to attract foreign capital, scrapping capital gains tax for FPIs and removing the 20% tax on interest income from such investments, effective April 1, 2026.

Banks .NSEBANK gained 6.1% in June, leading the Nifty 50's .NSEI 1.4% rise.

HDFC Bank HDBK.NS climbed 7.2% after a law-firm review related to the former chairman Atanu Chakraborty's resignation found no contemporaneous evidence supporting the concerns raised.

The lender also appointed former finance secretary Rajiv Kumar as part-time chairman for three years.

"My sense is that the worst of the FPI selling is over and outflows will reduce significantly," said Abhay Laijawala, chief investment officer for India at Lighthouse Canton.

"Meaningful FPI buying in large banks aided by steady earnings outlook could be enough to power Nifty higher after the 2026 underperformance so far."

($1 = 95.3100 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee)

(([email protected]; +91 9769003463;))

** Shares of HDFC Bank HDBK.NS up 2% at 817.1 rupees

** India's top private lender says average deposits rise 13.3% YoY, while gross advances were up 15.4% YoY as of June 30

** Morgan Stanley says HDBK saw a meaningful pickup in YoY loan growth, which should be positive for investor sentiment

** Citi expects bank's corporate and business banking departments to anchor growth momentum, agricultural/gold loans to outperform within retail; mortgages likely to trail broader retail

** Macquarie analysts say HDBK delivered resilient growth; key nuance is deposit mix - growth remained term-deposit led while CASA was softer

** Analysts at brokerage firm Jefferies said HDFC Bank saw a better-than-expected pickup in loan growth

** Stock rated "Strong Buy" on average by 39 analysts; median PT at 1,038.5 rupees - LSEG compiled data

** YTD stock down ~17.8%

(Reporting by Mridula Kumar in Bengaluru)

(([email protected];))

By Dharamraj Dhutia

MUMBAI, July 3 (Reuters) - India's ICICI Bank ICBK.NS plans its first dollar bond sale in nearly nine years, joining peers HDFC Bank and Axis Bank in leveraging the central bank's lower-cost hedging facility for foreign-currency issuance, two bankers said on Friday.

The lender is expected to raise at least $500 million through a likely five-year bond issue, according to the bankers familiar with the matter.

However, the issuance is unlikely before the second half of August, as ICICI Bank is awaiting its quarterly financial results later this month and must complete the renewal of its Global Medium Term Note programme, the bankers said.

"There are plans to tap the dollar bond market, but it may take 45-60 days for the actual issuance to happen as a lot of procedures are still pending," one of the bankers said.

The bankers requested anonymity as they are not authorised to speak to media. ICICI Bank did not immediately respond to a Reuters request for comment.

If completed, the transaction would mark ICICI Bank's first dollar bond issuance since December 2017, when it raised $500 million through 10-year bonds at a coupon of 3.80%.

The fundraising comes after the Reserve Bank of India in June introduced a swap facility allowing eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually.

The measure significantly lowers hedging costs, making overseas dollar fundraising more attractive.

HDFC Bank HDBK.NS became the first lender to use the new facility, raising $750 million through five-year bonds in June. Axis Bank AXBK.NS followed with an $800 million dual-tranche dollar bond issue.

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

(([email protected];))

MUMBAI, July 1 (Reuters) - India's HDB Financial Services HDBF.NS has accepted bids worth 11.50 billion rupees ($121.00 million), for bonds maturing in two years and 11 months, three bankers said on Wednesday.

It will pay a coupon of 7.90% and had invited commitment bids for the issue earlier in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on July 1:

* Size includes base plus greenshoe for some issues

($1 = 95.0450 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

(([email protected]))

Updates for markets open

June 30 (Reuters) - Indian shares opened higher on Tuesday, led by banks, after top private lender HDFC Bank HDBK.NS announced changes in its top management, while the easing Middle East conflict kept crude prices in check, supporting the sentiment.

Both benchmarks Nifty 50 .NSEI and the BSE Sensex .BSESN edged 0.36% higher at 24,032.05 and 77,005.51, respectively, as of 9:15 a.m. IST.

Ten of the 16 major sectors advanced. Banks .NSEBANK gained 0.5%, led by 0.9% rise in HDFC Bank after the lender appointed former Finance Secretary and ex-Chief Election Commissioner Rajiv Kumar as its part-time chairman on Monday.

HDFC Bank also named Puneet Sharma as its CFO, effective December 1, 2026. Sharma has spent more than six years as CFO at Axis Bank AXBK.NS.

Asian markets advanced after Wall Street equities closed higher overnight, helped by a rebound in technology shares following a sharp sell-off last week amid concerns over AI valuations. MKTS/GLOB

Brent crude LCOc1 remained below $73 a barrel, aiding the outlook for the world's third-largest oil importer, India. O/R

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich)

(([email protected]; +91 9769003463;))

June 29 (Reuters) - India's HDFC Bank HDBK.NS on Monday named Rajiv Kumar as part-time chairman.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Diti Pujara)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

Updates Friday story with Saturday comment from former chairman in paragraphs 7-8, 13, context in paragraph 3, bullet points

June 26 (Reuters) - HDFC Bank HDBK.NS said on Friday a legal review found no evidence to support concerns raised by former Chairman Atanu Chakraborty when he resigned in March citing ethical differences with India's largest private lender.

U.S.-listed shares of HDFC Bank HDB.N rose 1.7%.

Chakraborty's sudden exit had wiped out nearly 14% of the bank's market value, about $16 billion, in the following weeks. He cited "incongruence" between his personal values and bank practices for his resignation but has not elaborated.

His departure prompted India's central bank to issue a rare statement reassuring investors and depositors over the health of the systemic lender.

Law firms Wilson Sonsini and Wadia Ghandy conducted the legal review of the matter that has exposed leadership strain at the bank. Largely owned by foreign institutional investors, HDFC Bank has also faced ire over a stock that has struggled since a $40 billion merger with parent HDFC Ltd in 2023.

"Having now completed an extensive legal review, External Law Firms found that Mr. Chakraborty's statement and its implications were not substantiated by the record and witness interviews," the law firms said in a report published to stock exchanges by HDFC Bank late on Friday.

On Saturday, Chakraborty said he had not engaged with the law firms because they did not provide him with details of their investigation.

"I was open to engaging with the foreign firm since it appeared fairly independent, but without the (terms of reference), I chose not to engage," he told Reuters, describing the appointment of law firms as largely a compliance check.

Reuters reported exclusively last month that the law firms have not found any material deficiencies in governance or board processes.

The three-month review found no evidence from board committee minutes or witness interviews that Chakraborty raised concerns that "happenings and practices" at the bank were not aligned with his personal "values and ethics", the law firms said on Friday.

There was also no evidence that he disagreed with board decisions regarding the "Dubai matter", the law firms said, referring to a statement Chakraborty made to CNBC-TV18 that HDFC Bank had delayed taking action against officials involved in mis-selling Additional Tier-1 bonds to investors in Dubai.

The bank and the external law firms "repeatedly" asked Chakraborty to speak with the law firms as part of the review, but the interview did not take place, the report said.

Chakraborty responded to Reuters, "They carried out their review and concluded that the board was functioning well — of course, that was under me."

The conclusion of the probe allows HDFC Bank to proceed with its application to the Reserve Bank of India to reappoint CEO Sashidhar Jagdishan, whose three-year term expires in October.

That application, which had been due by the end of May, had been delayed pending the outcome of the review. The central bank must approve all top appointments at Indian lenders.

(Reporting by Jayshree P Upadhyay in Mumbai, Devika Nair and Shivani Tanna in Bengaluru, Chris Thomas in Mexico City, Gopika Gopakumar in Mumbai, Writing by Rishika Sadam; Editing by Maju Samuel and William Mallard)

(([email protected];))

June 26 (Reuters) - HDFC Bank Ltd HDBK.NS:

• HDFC BANK - ANNOUNCES CONCLUSION OF LEGAL REVIEW

• HDFC BANK - EXTERNAL LAW FIRMS SUBMIT LEGAL REVIEW REPORT TO HDFC BANK BOARD

• HDFC BANK - LEGAL REVIEW FINDS MR. CHAKRABORTY'S STATEMENT NOT SUBSTANTIATED

• HDFC BANK - NO SUPPORT FOR MR. CHAKRABORTY'S STATEMENT FOUND IN BOARD OR COMMITTEE MINUTES

• HDFC BANK - WITNESS INTERVIEWS DID NOT SUBSTANTIATE MR. CHAKRABORTY'S STATEMENT

• HDFC BANK - NO EVIDENCE MR. CHAKRABORTY RAISED CONCERNS OR DISAGREED WITH BOARD ON DUBAI MATTER

• HDFC BANK - NO CONTEMPORANEOUS EVIDENCE WAS IDENTIFIED REFLECTING THAT HE RAISED ANY CONCERNS ABOUT HIS PERSONAL VALUES AND ETHICS

Source text: ID:nNSE9TXyX1

Further company coverage: HDBK.NS

(([email protected];))

By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, June 25 (Reuters) - Three Indian development finance institutions are planning to raise at least $1.5 billion through foreign-currency bank loans under the central bank's discounted overseas borrowing facility, three people familiar with the plans said.

The institutions are favouring loans over bonds because none has issued dollar debt before and the process is simpler, the sources added.

The National Bank for Agriculture and Rural Development (NABARD), the Small Industries Development Bank of India (SIDBI) and the National Bank for Financing Infrastructure and Development (NaBFID) are each seeking to raise at least $500 million through foreign-currency loans, with NaBFID the furthest along after initiating talks with lenders, an executive confirmed.

"We expect to raise up to $2 billion via ECBs in this financial year. At present, we are planning to raise $500 million through the ECB route, and we have already started our activity and are exploring in the market," NaBFID managing director Rajkiran Rai told Reuters.

"With the RBI window opening, ECBs work out much cheaper. For the loan, the landed cost could be in the range of 6.5%-7.0%, NaBFID's Rai added.

The institution had also raised $125 million via a smaller dollar loan tranche in March, the sources added.

The sources declined to be identified as they are not authorised to speak to the media. NABARD and SIDBI did not respond to Reuters' requests for comment.

NABARD and SIDBI, which have not yet tapped foreign funding, have initiated preliminary talks and could approach the market over the next 30 to 40 days, according to all the sources.

"There is a lengthy procedure involved in a debut dollar bond sale, and it is time-consuming. If an institution is not going to be a regular issuer like EXIM Bank, it makes little sense to choose bonds over loans," one of the sources said.

Based on the credit ratings, dollar loans may be just marginally expensive than bonds for now.

The Reserve Bank of India earlier this month allowed banks and state-run companies raising funds overseas to access a subsidised hedging facility, lowering the cost of managing currency risk as part of a broader effort to attract dollar inflows and support the rupee.

Since then, HDFC Bank HDBK.NS, Axis Bank AXBK.NS and Power Finance Corp PWFC.NS have raised a combined $1.85 billion through dollar bonds, while Bank of Baroda BOB.NS and State Bank of India SBI.NS are preparing for similar issues.

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)

(([email protected];))

By Dharamraj Dhutia

MUMBAI, June 23 (Reuters) - India's state-run Power Finance Corp PWFC.NS has accepted bids worth $300 million for a five-year dollar bond issue, becoming the first non-bank lender to tap the central bank's subsidised hedging facility for overseas borrowings, three bankers said.

The bonds were priced at a spread of 105 basis points over U.S. Treasuries, giving a yield of 5.327%, well inside the initial guidance of 130 basis points, indicating strong investor demand.

"The company chose to accept a lower quantum as this was their first tranche, but they could explore this route again when treasury yields ease," one of the bankers said on Tuesday.

Earlier, PFC had told bankers that it intended to raise $500 million, but ultimately settled for a smaller amount, as bankers said the spread would have widened had it pursued the full quantum.

The bankers requested anonymity as they are not authorised to speak to media, while PFC did not reply to a Reuters email seeking comment.

This comes after India's top private lender, HDFC Bank HDBK.NS sold $750 million of five-year dollar bonds last week at a spread of about 90 basis points over U.S. Treasuries.

Earlier this month, the RBI said external commercial borrowings by banks and state-run companies would qualify for a subsidised hedging facility, helping cut the cost of managing currency risk.

The step forms part of a wider RBI push to draw in dollar inflows and bolster the rupee.

Lenders Bank of Baroda and Axis Bank have finalised bankers for their planned dollar bond sales, and may set the pricing on them before the end of the week.

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

(([email protected];))

** India's stock benchmarks Nifty 50 .NSEI and Sensex .BSESN fall 0.9% and 1%, on course to snap a five-session winning run, dragged by IT stocks after Accenture's weak demand commentary

** Twelve of the 16 major sectors log losses; the broader small-caps .NIFSMCP100 rise 0.3%, mid-caps .NIFMDCP100 drop 0.2%

** IT index .NIFTYIT falls 5.2%, slides to a three-year low after Accenture reports a drop in bookings and flags weakness driven by delayed decisions due to the Mideast conflict

** "Accenture's commentary leads to risks of a potential weak Q2, implying risks to financial year 2027 earnings overall for Indian IT companies," says Investec

** Top private lender HDFC Bank HDBK.NS falls 2.7%; the Reserve Bank of India approved a three-month extension for interim chairman Keki Mistry, or until a new Chairman is appointed

** Heavyweight Reliance Industries RELI.NS trades flat ahead of its annual general meeting later in the day

** Despite the session's losses, benchmarks Nifty and Sensex are up 1.4% and 1.5%, respectively, for the week, aided by a drop in crude prices LCOc1 to $80 a barrel on the preliminary U.S.-Iran peace deal

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

By Dharamraj Dhutia

MUMBAI, June 17 (Reuters) - India's largest private lender, HDFC Bank HDBK.NS, has accepted bids worth $750 million for its planned dollar bonds, capitalising on the central bank's subsidised hedging window for overseas borrowings, three merchant bankers said on Wednesday.

The deal is the largest by an Indian lender since the State Bank of India's SBI.NS $750 million five-year bond sale in May 2023 and comes as SBI and Bank of Baroda BOB.NS line up similar overseas debt sales.

HDFC Bank priced its 5-year bond issue at 90 basis points over U.S. Treasuries, translating to a yield of 5.0670%.

After launching with guidance at 120 basis points over Treasuries, robust investor demand compressed the spread, bankers said.

The sources could not be named as they are not authorised to speak to the media. HDFC Bank did not reply to a Reuters email seeking comment.

Earlier this month, the RBI said external commercial borrowings by banks and state-run companies would qualify for a subsidised hedging facility, helping cut the cost of managing currency risk.

The step forms part of a wider RBI push to draw in dollar inflows and bolster the rupee.

"Considering the hedging discount, the all-in landed cost of funds for the bank should be around 7%," one of the bankers said.

Merchant bankers expect inflows of around $15 billion to $20 billion through the ECB route over the next six months.

Proceeds of the bond issue will be used to support overseas branches and subsidiaries, fund growth in offshore businesses and for general corporate purposes, bankers said, citing a term sheet.

The lender also has a call option due in August for a perpetual bond it had sold five years ago.

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

(([email protected];))