India counts HDFC stake in HDFC Bank as foreign: report

15 Nov, 2014

MUMBAI: India's foreign investment regulator has approved raising the foreign holding limit in second-biggest private sector lender HDFC Bank Ltd but counts its parent's holding as foreign, the Business Standard newspaper reported on Saturday.

Counting the 22.50 percent stake owned by mortgage lender Housing Development Finance Corp and two of its units in HDFC Bank would limit capacity for any further foreign fund raising by the bank, the report said, citing an unidentified government official.

An HDFC Bank spokesman was not immediately available for comment.

HDFC Bank said it May it has plans to raise as much as 100 billion rupees by selling shares.

HDFC Ltd is an Indian mortgage lender but is 77.85 percent owned by foreigners, according to stock exchange data.

Copyright Reuters, 2014

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