HDFC Bank to expand branch network abroad

HDFC Bank to expand branch network abroad
PTI
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First Published: Mon, Mar 10 2008. 12 39 AM IST
Updated: Mon, Mar 10 2008. 12 39 AM IST
New Delhi: With the in-principle approval to merge Centurion Bank of Punjab (CBoP) with itself, HDFC Bank Ltd is looking at increasing its global footprint.
“We are exploring the possibility of expanding our presence,” said Deepak Parekh, chairman of Housing Development Finance Corp., promoter of HDFC Bank. Among various destinations, the bank is looking at Canada and Singapore.
To fund the global expansion, HDFC Bank also plans to raise $1 billion (about Rs4,000 crore) from overseas markets.
“We are going to open some foreign branches for which we require funds,” Sudhir Joshi, HDFC Bank treasury (head), said. “As and when needed, we will raise funds through different instruments under the medium-term notes programme; the first tranche of funds would be raised in the next three-four months,” he added.
The bank has already applied for licences in Bahrain and Hong Kong and has a representative office in Dubai.
Meanwhile, the CBoP merger will create the country’s largest private sector financial institution in terms of branch network. HDFC Bank’s board has already decided their stock swap ratio of 1:29 and the combined entity’s network would go up to 1,148 branches.
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First Published: Mon, Mar 10 2008. 12 39 AM IST