|
|
Article: HSBC gives in to RBI, bull market demands, sells 7 percent in UTI Bank.
- Article from:
- Economic Times (New Delhi, India)
- Article date:
- February 25, 2006
CopyrightCOPYRIGHT 2006 The Economic Times. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Feb. 25--MUMBAI, India -- British bank HSBC has sold bulk of its shareholding in UTI Bank, two years after it acquired a 14.62 percent stake in the local bank. On Friday, HSBC sold 7.19 percent stake in UTI Bank to a clutch of foreign portfolio investors for Rs 638 crore.
The transactions could well have been driven by the Reserve Bank of India stricture that no foreign bank with branch operation in India can hold more than 5 percent in a domestic bank. HSBC's holding in UTI Bank now stands at 4.99 percent.
The bull run on the stock market helped the UK bank to clock in a 253 percent return from the UTI Bank deal in a little over two years. Post-UTI ...