Peoples Bank Of China Acquires 1% Stake In HDFC Amid Markets Downturn

By SM.12 Apr, 2020

imran-azhar

 

 

 

In a major development for the Indian financial sector, the People"s Bank of China (PBOC) has taken up 1.01 per cent stake in the mortgage lending major Housing Development Finance Corporation (HDFC). The central bank of China has acquired nearly 1.75 crore shares in HDFC during the quarter ended March, according to shareholding pattern of the company disclosed to the BSE.


The development comes at a time when the share price of the lender plunged. During the past one month the stock prices of HDFC fell over 25 percent amid the beating across stocks due to the coronavirus crisis.


Speaking to a TV channel, HDFC"s Vice Chairman and CEO Keki Mistry said that PBOC has been an existing shareholder and had owned 0.8 percent in the company as of March 2019. The disclosure has been made now since the stake has hit the 1 percent regulatory threshold, Mistry said, adding that the bank has been accumulating the shares for over a year.


Foreign portfolio investors hold 70.88 per cent stake in the company which also includes a 3.23 percent shareholding of the Government of Singapore.


Currently, the shares of HDFC are at Rs 1,701.95 per share on the BSE.


The People"s Bank of China holds stakes in companies across the world, including BP Plc and Royal Dutch Shell Plc.