📈 HDFC Bank Share Price Update 📉
Indian Reserve Bank has approved the sale of its entire 90% stake in HDFC Credit to HDFC Bank. The company disclosed this information during an exchange filing. HDFC Credit is an education loan assisting company related to the distribution of educational loans. The bank stated in a statement.
HDFC Bank informed the Bombay Stock Exchange, “This is related to our previous letter dated June 19, 2023, where we informed that the previous Housing Development Finance Corporation Limited (HDFC) has acquired approximately 90% of HDFC Credit. Some documents were submitted that day for investment/sale.” The total issued and paid-up shares of Credit and debenture holders are subject to distribution.
News of HDFC Merger 8 months later
News of the HDFC Credit sale of 90% stake came eight months after the merger of HDFC and HDFC Bank. In April 2023, the Reserve Bank of India asked HDFC to reduce its stake in Credit. This part was to happen in the next two years.
Complete Investment Transfer of HDFC Limited
As per the terms of the agreement, HDFC will have the right to appoint a non-executive nominee director for HDFC Credit’s board. The position will be for HDFC Bank. HDFC Bank informed the exchange, “In a letter dated July 1, 2023, we have informed that HDFC Limited has merged with HDFC Bank from July 1, 2023, after which the entire investment of HDFC Limited in HDFC Credit will be transferred.”
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