Housing Development Finance Corp. has teamed up with debt dealer Capital Alliance to take financial instruments to the provinces.
rnldblquote Depositors in the provinces have few opportunities outside banks to put their money, though large volumes of savings are waiting to be tapped,
dblquote says HDFC Chief Sarathchandra. rn
rnHDFC will sell capital market securities such as t-bills and bonds to its 50,000 strong clientele in partnership with Capital Alliance, which has a primary dealership.rn
rnldblquote It doesnt make economic sense for us to establish branches just for selling debt instruments,
dblquote says Ajith Fernando, who heads Capital Alliance.rn
rnldblquote By using HDFCs existing branch network and clients we can cut the costs of taking capital market instruments to the provinces.
rnHDFC may also sell its own securities through the investment windows in the future. rn
rnThe housing finance firm has plans to issue long-term bonds and mortgage securities to raise long term funds.rn
rnOriginally set up as a building society, it was converted into a government corporation in 2000. rn
rnIt will soon be known as HDFC Bank after amendments to the Act governing its incorporation is passed in parliament.rn
rnHDFC has also sought a listing on the main board of the CSE to list its Rs 2 bn issued capital in the market. Only Rs 400 million is paid up at present.rn
rnThough the capital call-up will be made to existing mainly state shareholders, few are expected to respond. rn
rnHDFC is planning to place them among new investors and proposals have already been sought from investment banks to manage the issue.rn