HDFC Bank says no to Mitsubishi Financial's $2-bn proposal to buy into NBFC arm
The Japanese group, second-largest bank holding firm globally, proposed to acquire 20 percent stake in HDB Financial Services for $2 billion.
The board, instead, backed a plan to go ahead with the listing of the NBFC unit, which will help it comply with the regulations laid out by the Reserve Bank of India.
The decision is likely to disappoint the establishment in Japan as Tokyo had conveyed its support for the deal as part of solidification of economic and strategic relationship between the two Quad nations.
MUFG’s interest in picking up a substantial stake in HDB Financial Services was seen as the Japanese financial institution’s interest in growing its presence in India. In July, news agency Bloomberg had reported that the deal was not progressing because of differences over how much say MUFG will have in company strategies.
