The Housing Development Finance Corporation Bank finally took a breath of relief when Reserve Bank of India gave permission to raise as much as Rs. 3000 crores through the help of masala bonds. Such bonds are ways to raise capital in overseas but in Indian denomination rather than in local currency. Although the bank had already exceeded the limit of raising Rs 5000 crores, due to the newly emerging route, the freshly granted permission will now support HDFC to raise more money.

Generally, an enterprise is allowed to increase funds through masala bonds, outside the country, in four tranches and the first step of cash raising have already been done. The permission for the second rise in such ways tend to develop in a pattern and only after it is granted, one can hassle-free raise certain cash of amount. HDFC will have its share of fund amount of Rs. 3000 crores at an overseas platform with all the denomination in Indian currency.

As per the latest reports carried out by RBI, the funding and lending side of would act upon 2.20% and 2.35%, individually thus reiterated the guidelines so as to maintain the interest rates. The current series of raising fund through masala bonds might quantify a dip in demand where there may also occur a surge in prices. The mode to cut rates by the central bank might help such home-country-based financial units to maintain a balance, bring elasticity and avoid the post-Lehman situation of 2008-09 (the depreciation period) in the nation.

 

http://www.business-standard.com/article/companies/hdfc-gets-rbi-nod-to-raise-rs-3-000-crore-more-in-masala-bonds-116121700438_1.html

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