Financial Daily from THE HINDU group of publications
Friday, May 28, 2004
Financial Daily from THE HINDU group of publications Friday, May 28, 2004 |
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Money & Banking
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Mergers & Acquisitions HSBC gets nod to buy 14.7% stake in UTI Bank Our Bureau
Mumbai , May 27 HSBC has said that it has got the RBI's permission to buy 14.7 per cent stake in UTI Bank. HSBC has received RBI permission to carry out only the first tranche of the Rs 418-crore deal although it had applied for permission to purchase the entire 20.08 per cent involving two tranches. HSBC had earlier received the FIPB and SEBI nod for the same earlier. "We are examining the letter we received from the RBI. We will be a making a statement shortly," said the HSBC spokesperson. With voting rights stuck at 10 per cent for foreign banks in Indian private banks, HSBC will have to treat this as merely an investment.
If the rules change, HSBC will benefit from the first mover advantage, said a banking analyst. In December 2003, HSBC had announced the Rs 418-crore deal to purchase 20.08 per cent stake in UTI Bank from CDC Capital partners (now Actis) at around Rs 90 per share.
More Stories on : Mergers & Acquisitions | Private Banks | Foreign Banks
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