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Citigroup Inc sold its entire 9.85 per cent stake in housing finance major HDFC for about $1.9 billion at the current exchange rate.
In a bid to bolster capital under the new capital accord, global banks are selling their overseas assets.
This move is proving more effective in garnering resources than tapping the equity markets in their home countries, which are in doldrums.
At a price of Rs 657.56 per share, the sale of 145.3 million HDFC shares by Citi will result in a pre-tax gain of $1.1 billion (Rs 5,490 crore) and a post-tax gain of around $722 million (Rs 3,550 crore).
The foreign bank, in a statement said the sale of stake in HDFC is part of its ongoing capital planning efforts.
“Citi remains deeply committed to India and we continue to focus on growth opportunities for our franchise in this very important market,” said Mr Pramit Jhaveri, CEO, Citi India.
Meanwhile, the HDFC scrip fell 3.45 per cent (or Rs 24.15) to close at Rs 676.20 on the BSE.
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