The People’s Bank of China (PBoC), the country’s central bank, has divested some or all its stake in India-based lender Housing Development Finance Corporation (HDFC).
This was unveiled in HDFC’s latest shareholding data for the April to June quarter.
According to the data submitted to the stock exchanges, the PBoC was not found in HDFC’s list of shareholders.
At the end of June 2020, PBoC was missing from the list of foreign portfolio investors who had over 1% stake in the bank.
According to the Reserve Bank of India regulatory norms, when companies hit the 1% threshold, lenders are required to disclose the fact to the central bank.
Therefore, it can no longer be ascertained if PBoC holds any stake in HDFC.
In April, PBoC raised its stake from 0.8% to 1.01%, comprising nearly 17.49 million shares of HDFC.
The share purchase, which took place in the first quarter of this year, was worth $389,949.
HDFC vice-chairman and CEO Keki Mistry acknowledged that PBoC now owns less than 1% stake in the company.
Meanwhile, recently, state-owned lender Punjab National Bank (PNB) said that it would raise as much as INR70bn ($930m) in equity capital via share sale for strengthening its balance sheet.
The government-owned lender said it will raise the capital via qualified institutional placement (QIP), follow on public offer (FPO) or a rights issue.
The bank intends to rake in as much as INR100bn of capital in total through share sale and tier 2 bonds, according to the exchange filings.