HDFC Bank's Rs 3,000-crore AT1 bonds get FY23's best rate at 7.84%

Canara Bank plans Rs 1,500-2,000 cr AT1 sale; Axis Bank, too, mulls fundraise

India’s largest private sector lender HDFC Bank on Tuesday sold additional tier-1 (AT-1) bonds worth Rs 3,000 crore at a cut-off rate of 7.84 per cent -- the lowest rate shelled out by any bank, so far, in the current financial year.

The rate paid by HDFC Bank is lower than the 7.88 per cent cut-off that was set for Bank of Baroda’s AT-1 bond sale worth Rs 2,474 crore on August 30. On most occasions, debt offerings by state-owned lenders tend to be cheaper than those by their private sector peers, because public sector banks are perceived to have