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Our Bureau

Mumbai , Aug. 19

HDFC has sold its entire stake of over 12 per cent in SBI Home Finance. The sale of these shares was through open market.

SBI Home Finance was promoted by SBI along with HDFC in 1988.

In a notice to the NSE, SBI Home Finance said HDFC has sold its holding in the company and its holding stands reduced to nil. These shares were sold by HDFC in the last one-week. These shares were sold in the market between Rs 11-12. The buyer of these shares was not known. Total proceeds from the sale of these shares are around Rs 2 crore.

The HDFC, General Manager (Treasury), Mr Conrad D Souza, said the shares were sold by HDFC in the open market. He said the sale of these shares was due to the various regulatory requirements a housing finance company has to do.

Under the regulations of housing finance company, for calculating capital adequacy requirement, the investment in capital market is not considered. Also a housing finance company cannot invest more than 5 per cent of net owned funds in capital market.

However, he said the company has no plans to dilute its holdings in or ext from Gruh Finance. "It (Gruh) is subsidiary of HDFC and we have no plans to exit, while in SBI Home Finance we did not have majority stake and had no control over the company."

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