HDFC Bank closes ₹9,552 cr stake sale in HDFC Credila

HDFC Bank closes Rs 9,552 cr stake sale in HDFC Credila

ET Online

Synopsis

HDFC Bank announced the completion of selling its stake in HDFC Credila, its education finance arm, for Rs 9,552.73 crore to private equity firms BPEA EQT and ChrysCapital. The sale, part of regulatory requirements preceding the merger of mortgage lender Housing Development Finance Corp with HDFC Bank, was finalized after its announcement in June the previous year.

A woman walks past a signboard of HDFC Bank's automated teller machine (ATM) in New DelhiReuters

HDFC Bank said on Wednesday that it has completed the sale of its stake in education finance arm HDFC Credila for Rs 9,552.73 crore to private equity firms BPEA EQT and ChrysCapital.

The deal which was announced in June last year, was part of mandated regulatory requirements before the completion of mortgage lender Housing Development Finance Corp‘s merger with HDFC Bank.

The conclusion of the deal comes ahead of HDFC Bank’s fourth-quarter results next month.

Although HDFC Bank reported a profit surpassing expectations in the third quarter, analysts highlighted its weak margins and liquidity challenges, leading to a significant decline in its stock value.

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