HDFC Bank will consider raising Rs 50,000 crore through bonds over the next 12 months on a private placement basis.

The board of the country’s largest private-sector bank will meet on Saturday to consider the proposal. Its directors will also then consider the results for the January-March quarter.

“The bank proposes to raise funds by issuing perpetual debt instruments (part of additional Tier I capital), Tier II capital bonds and long-term bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore over the period of the next 12 months through private placement mode.

The board of directors would consider this proposal at its ensuing board meeting to be held on April 15, 2023,” the lender said in a regulatory filing on Tuesday.

Banks are raising capital even as liquidity has remained tight, demand for credit high and deposit growth lagging behind. They are raising resources through AT1 bonds and other instruments over the past few months.

Last month, the State Bank of India (SBI) raised Rs 3,717 crore of AT1 bonds at a coupon rate of 8.25% with a 10-year call option. In February, the state-owned lender had mobilised Rs 4,544 crore.