Japan’s MUFG to buy stake in India’s HDFC Bank unit: Report

Japan’s Mitsubishi UFJ Financial Group (MUFG) is buying a 20% stake in HDFC Bank‘s non-banking unit HDB Financial Services, valuing the IPO-bound subsidiary at $9-10 billion, The Economic Times reported on Friday.

The final decision is likely to take place next week at the HDFC Bank board meeting, according to the report, which cited people familiar with the matter.

MUFG is set to pick up the stake in the unit for $2 billion, and the deal is being done at five times the book value, the Economic Times reported.

HDFC Bank did not immediately respond to a Reuters request for comment, while MUFG declined to comment.

The Indian private lender, which is expected to report its fourth-quarter results on April 20, said in January it expects to start the process of listing its non-bank consumer financing business HDB Financial in the next few months.

In order to adhere to the Reserve Bank of India’s regulations, HDB must be listed on or before September 2025.

HDFC Bank‘s shares were trading down 1.1% on Friday.

Reuters

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