MUMBAI: HDFC Bank has reportedly reinitiated discussions with Japan’s Mitsubishi UFJ Financial Group (MUFG) to sell a significant stake in its non-lending subsidiary, HDB Financial Services, ahead of a proposed initial public offering (IPO), according to a report by Moneycontrol.
Sources cited in the report revealed that HDFC Bank officials are once again engaging with MUFG’s senior management. However, the discussions are still in the early stages, and it remains uncertain whether a deal will materialise.
The move comes in the wake of revised norms issued by the Reserve Bank of India (RBI) on October 4, which may have prompted HDFC Bank to reconsider a potential stake sale before the IPO.
According to the report, HDFC Bank has offered a 20 per cent stake in HDB Financial to MUFG and appears more flexible regarding deal valuations.
HDFC Bank’s shares closed 0.39 per cent lower at Rs1,864.80 on Monday, compared with the previous close of Rs1,872.05.
As of now, neither HDFC Bank nor HDB Financial or MUFG have responded to email queries regarding the matter, as per the report.
