HSBC sells Axis, Yes Bank stakes
HSBC said it had sold its stakes in two non-core assets in India for $425 million as it continues to slim down its business and build reserves to cope with tougher regulations coming into force following the financial crisis.india Updated: Jun 28, 2012 23:31 IST
HSBC said it had sold its stakes in two non-core assets in India for $425 million as it continues to slim down its business and build reserves to cope with tougher regulations coming into force following the financial crisis.
The British bank said on Thursday it had sold 4.7% stakes in Indian lenders Axis Bank and Yes Bank for Rs 1,880 croreand Rs 550 crore respectively.
HSBC said in May that, as part of a three-year recovery plan, it had sold 28 businesses, taking 15,000 staff off its payroll, and releasing about $55 billion in risk-weighted assets.
Global institutional investors have been cashing in their holdings in Indian financial services firms.
Earlier this year, Citigroup sold its stake in top Indian mortgage lender Housing Development Finance Corp for $1.9 billion, while US private equity firm Warburg Pincus sold its stake in Kotak Mahindra Bank Ltd to raise about $274 million.
In December 2003, HSBC had bought about 20% in Axis Bank (then UTI Bank) from private equity major CDC. The British bank bought the stake in Yes Bank in 2008.
In April, the Netherlands-based Rabobank sold about 3.4% stake in Yes Bank for about Rs 453 crore. Rabobank sold 1.3 crore shares for Rs 357.03 a piece through an open market transaction.
Of this, Bajaj Allianz Life insurance picked up 25.2 lakh shares, while Citigroup Global Markets Mauritius picked up 22 lakh shares at Rs 357 per unit, according to the BSE data.
Rabobank owned about 1.7 crore shares or 4.7% in Yes Bank at the end of March 31, 2012.
In 2010, Rabobank had sold about 11% in Yes Bank and had thus reduced its stake in Yes Bank from around 15.9% to 4.9%. Rabobank has been reducing its stake in Yes Bank as it plans to enter banking space on its own in the country.
First Published: Jun 28, 2012 23:30 IST