HSBC raises $425 mln in Axis, Yes Bank stake sales

INDIA-HSBC-AXIS-YES-BANK:HSBC raises $425 mln in Axis, Yes Bank stake sales

HSBC said it had sold its stakes in two non-core assets in India for $425 million as it continues to slim down its business and build reserves to cope with tougher regulations coming into force following the financial crisis.

The British bank said on Thursday it had sold 4.7 percent stakes in Indian lenders Axis Bank and Yes Bank for 18.8 billion rupees and 5.5 billion rupees respectively.

HSBC said in May that, as part of a three-year recovery plan, it had sold 28 businesses, taking 15,000 staff off its payroll, and releasing about $55 billion in risk-weighted assets.

Global institutional investors have been cashing in their holdings in Indian financial services firms.

 

Earlier this year, Citigroup sold its stake in top Indian mortgage lender Housing Development Finance Corp for $1.9 billion, while U.S. private equity firm Warburg Pincus sold its stake in Kotak Mahindra Bank Ltd to raise about $274 million.