HDFC Bank Divests Stake In Education Loan Arm
The share sale comes after the RBI had directed the bank to trim down its shareholding in HDFC Credila.
HDFC Bank Ltd. has sold 14.02 crore equity shares of HDFC Credila Financial Services to a consortium of four companies for approximately Rs 9,552 crore.
HDFC Credila will no longer be a subsidiary of HDFC Bank, according to an exchange filing on Wednesday.
The companies who bought equity shares are Kopvoorn B.V., a part of Hong-Kong based private equity firm BPEA EQT Group. Other buyers are ChrysCapital group's Moss Investments Ltd., Defati Investments Holding B.V., and Infinity Partners.
The companies do not belong to promoter, promoter group or group companies, it said.
The share sale comes after the Reserve Bank of India had directed HDFC Bank last April to trim down its shareholding in HDFC Credila, the education loan subsidiary, to 10% within two years of the merger with Housing Development Finance Corp.
HDFC Bank will maintain a 9.99% stake in HDFC Credila, which offers education loans to students pursuing higher education in India and abroad. The company reported a total revenue of Rs 1,352.18 crore, and its loan book stood at Rs 15,298 crore in the last fiscal.
Its net worth was at Rs 2,435.09 crore as on March 31, 2023. The capital adequacy ratio was at 20.42%, of which Tier I capital was 14.60% and Tier II capital was 5.82%.
In the December quarter, HDFC Bank's net profit rose 2.5% sequentially to Rs 16,373 crore. Figures are not comparable year-on-year as HDFC Bank concluded the merger with HDFC in July 2023. Despite a rise in bottomline, investors were disappointed due to the weakness in the bank's core operational performance.
