Mortgage lender HDFC Ltd on Thursday said the company's shareholders have approved raising up to Rs 1.25 lakh crore by issuing bonds or other hybrid instruments on a private placement basis. The approval was received at the company's annual general meeting (AGM) held through audio visual medium.

On July 2, the company had informed about its capital raising plan and said that it would seek shareholders' nod at the AGM. As a special business, the board of directors got approval for issuance of redeemable non-convertible debentures and/or other hybrid instruments on private placement basis up to an amount not exceeding Rs 1,25,000 crore, HDFC Ltd said.

The country's largest mortgage lender also said that it has received shareholders' nod for selling its stake in its life insurance and general insurance subsidiaries. "...approval for sale of shares held in HDFC Life Insurance Co Ltd, a material listed subsidiary of the Corporation, pursuant to the specific direction issued by the RBI. Approval for sale of shares held in HDFC ERGO General Insurance Co Ltd, a material subsidiary of the Corporation pursuant to specific direction issued by RBI," it said.

Besides, the company has also received approval for re-appointment of Renu Sud Karnad as the Managing Director of the Corporation, HDFC said.

It also announced its first quarter earnings for the current fiscal year, registering 15 percent increase in consolidated net profit at Rs 4,059 crore as against Rs 3,540 crore in the same quarter a year ago.

Total income of the company rose by 29 percent to Rs 29,959 crore in April-June quarter of 2020-21 as against Rs 23,240 crore in the same period of FY20. However, it said that as most part of the June quarter was under lockdown to prevent spread of COVID-19, the current and previous year's numbers are not directly comparable.

First Published:Jul 31, 2020 8:00 AM IST