 "RBI relaxes restrictions on HDFC Credila over on-boarding of new customers")
Housing Development Finance Corporation (HDFC) on Tuesday said the Reserve Bank of India has relaxed restrictions on its education finance arm, HDFC Credila, related to the addition of new customers.
The restrictions were eased after the company met RBI's condition that the application for change in the shareholding of HDFC Credila as a non-banking finance company be made to the central bank before July 31, 2023, according to the filing.
Also as a directive for the HDFC and HDFC Bank merger, the RBI had asked the company to cut its stake in the education finance unit to 10% over the next two years, and stop onboarding new customers.
HDFC had, in April last year, announced a $40 billion deal to merge with HDFC Bank, to create a financial services titan to better tap rising demand for credit.
Last week, HDFC announced that BPEA EQT and ChrysCapital will buy a 90% stakein HDFC Credila for 90.60 billion rupees.
After the stake sale, HDFC will retain a 9.99% share in the unit.
After the stake sale, HDFC will retain a 9.99% share in the unit.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%