HDFC Bank to pick 15% stake in IDRCL

The private sector lender on Tuesday said that it will pick 15% stake in India Debt Resolution Company Limited (IDRCL) for Rs 7.50 crore.

HDFC Bank said that the equity investment will be done in tranches, the first of which for Rs 3 crore is expected to be complete by 31 March 2022. "Subsequent tranches of equity investment will be made as and when determined by the Board of Directors of IDRCL," it said. Post investment of all tranches, the bank will hold upto 15% of the equity share capital of the IDRCL.

The lender has received approval from the Reserve Bank of India and the Department of Economic Affairs, Ministry of Finance, for the deal.

HDFC Bank added that the bank and its subsidiaries in the ordinary course of business may have business dealings with IDRCL at an arm's length basis.

Incorporated on 3 September 2021, IDRCL functions as a debt management company. It is engaged in all kinds of debt management, operational management and consultancy services in relation to debt resolution for an asset reconstruction company or investment trust or any other portfolio of securities.

HDFC Bank is one of India's leading private bank. As of 31 December 2021, HDFC Bank's distribution network was at 5,779 branches and 17,238 ATMs/ cash deposit & withdrawal machines (CDMs) across 2,956 cities/ towns as against 5,485 branches and 15,541 ATMs/ CDMs across 2,866 cities/towns.

The private sector bank's net profit rose 18.08% to Rs 10,342.20 crore on 8.33% increase in total income to Rs 40,651.60 crore in Q3 December 2021 over Q3 December 2020.

Shares of HDFC Bank were up 0.54% at Rs 1440.70 on the BSE.

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