HDFC unlikely to dilute stake in HDFC Bank
The country's largest private sector housing finance firm, HDFC Ltd, has no plans to dilute its stake in its subsidiary HDFC Bank in wake of sector regulator National Housing Bank putting an equity exposure ceiling of 20 per cent in a company.
By PTI |
NEW DELHI: The country's largest private sector housing finance firm, HDFC Ltd, has no plans to dilute its stake in its subsidiary HDFC Bank in the wake of the sector regulator National Housing Bank putting an equity exposure ceiling of 20 per cent in a company.
According to sources, HDFC is not planning equity dilution in its banking arm.
However, HDFC spokesperson could not be contacted for comment on the NHB guideline.
As per the guideline, the aggregate exposure of a housing finance company to the capital market in all forms (both fund based and non-fund based) should not exceed 40 per cent of its networth as on March 31 of the previous year.
Within this overall ceiling, direct investment in shares, convertible bonds/debentures, units of equity-oriented mutual funds and all exposures to Venture Capital Funds (VCFs) [both registered and unregistered] of the housing finance company should not exceed 20 per cent of its networth, the guideline issued said.
Networth of HDFC Ltd stood at Rs 13,137 crore at the end of March 2009.
According to sources, HDFC is not planning equity dilution in its banking arm.
However, HDFC spokesperson could not be contacted for comment on the NHB guideline.
As per the guideline, the aggregate exposure of a housing finance company to the capital market in all forms (both fund based and non-fund based) should not exceed 40 per cent of its networth as on March 31 of the previous year.
Within this overall ceiling, direct investment in shares, convertible bonds/debentures, units of equity-oriented mutual funds and all exposures to Venture Capital Funds (VCFs) [both registered and unregistered] of the housing finance company should not exceed 20 per cent of its networth, the guideline issued said.
Networth of HDFC Ltd stood at Rs 13,137 crore at the end of March 2009.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
