Weekly Recap: LIC stake rise to 9.99% and $1.75B GIFT City bond issue

Bernstein sees upside in select Indian banks, with HDFC Bank (56.7%), ICICI Bank (31.1%), Kotak Mahindra Bank (32.4%), and Axis Bank (14.8%) showing potential. SBI has modest upside (2.6%), while IndusInd Bank may decline. The report cites strong loan growth, easing margin pressure, and stable asset quality as key drivers.

HDFC Bank raised $1.75 billion via senior unsecured bonds in GIFT City, with tranches at 5.159% and 5.401% interest rates. The bonds received strong investor interest, with orders reaching $7 billion. The bank plans to use the funds for overseas lending and general banking activities. HDFC Bank shares have declined 26% year-to-date, lagging the Nifty 50 index, amid post-merger challenges and higher funding costs.

HDFC Bank raised $1.75 billion through overseas bonds, the largest fundraising by an Indian bank since the global financial crisis. The bank issued $500 million in 3-year notes at 5.16% and $1.25 billion in 5-year notes at 5.4%. The funds will support business growth. The RBI approved LIC to acquire up to 9.99% stake in HDFC Bank, which currently holds 4.11%.

HDFC Bank faces complaints from 70 investors, totaling $12.5M, over a $100M Luxembourg Life Fund sold by Carlisle Asset Management. Investors allege mis-selling and high promised returns (14-16%). HDFC denies wrongdoing, stating it only facilitated investments. Carlisle halted redemptions in 2020, leaving investors without access to funds.

HDFC Bank raised $1.75 billion through senior unsecured bonds, its largest overseas fundraising since the global financial crisis. The bank issued $500 million in 3-year notes at 5.16% and $1.25 billion in 5-year notes at 5.4%. The bonds will be listed on India INX and NSE-IX. The bank has raised $2.5 billion in dollar bonds since June. Analysts cite strong investor confidence. The RBI approved LIC to acquire up to 9.99% stake in HDFC Bank.

Levi & Korsinsky, LLP filed a securities fraud class action lawsuit against HDFC Bank Limited (NYSE:HDB) on behalf of investors who purchased its securities between July 17, 2023, and May 26, 2026. The complaint alleges false statements and concealment of improper payments, leading to overstated financials and misleading statements about the company's prospects. Investors are encouraged to explore potential recovery under federal securities laws.