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Article: Global News: India Puts Brakes On HSBC's UTI Bank Aspirations.(Hongkong and Shanghai Banking Corporation Ltd.)(UTI Bank Ltd.)
- Article from:
- The Banker
- Article date:
- July 1, 2004
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HSBC's purchase of a minority stake in a private Indian bank has been pruned to 14.6%, confirming that the move made last year by the Indian government to raise the foreign investment limit in private banks to 74% is not an open invitation to foreign banks.
Last December, HSBC announced that it would buy a 14.6% stake in UTI Bank, a profitable private bank, from Actis, a UK private equity firm, with an option to buy another 5.4% once the regulators cleared the purchase.
Had HSBC acquired the entire 20% Actis stake, it would have had to make a general offer to buy another 20% from UTI Bank's shareholders, and could have emerged as UTI Bank's single ...