HDFC raises $2.3b as foreign investors warm to Indian bank

HDFC Bank raised Rp155 billion $2.26 billion on Wednesday in the largest ever issue of primary shares by a private sector bank in India, underscoring a revival of foreign investor interest in India’s banking sector that has long been overshadowed by weak asset quality and mounting bad debt.

The Mumbai-based lender could not have timed the share sale better, launching just as its domestic shares and American Depositary Receipts both hit new highs.

The boost in its share price saw HDFC Bank valued at around 5.2 times book value on a trailing twelve-month basis, making it the world's most expensive bank by that measure. But this did...