Thursday June 28, 03:43 AM
Standard Life to hike stake in HDFC insurance JV
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By Banking Bureau
Deepak Parekh, chairman, Housing Development Finance Corporation (HDFC) expects interest raes to rise by another 25 to 50 basis points if RBI mops up liquidity through a cash reserve ratio (CRR) hike. Parekh was addressing the annual general meeting(AGM). HDFC has made a total profit of Rs 381 crore out of its five-year investment in Intelnet. Recently the corporation had sold out 50% stake in Intenet to US-based Blackstone for a total consideration of Rs 445 crore. Parekh said that the UK- based Standard Life is all set to double its investment in HDFC Standard Life Insurance to 26 %. HDFC which has got a ROE of 31% from its investment in the HDFC Standard Life would receive a substantial premium while selling 12.22% to Standard Life. Responding to shareholders concern over that 80 % (69% foreign institutional investors and 11% foreign direct investment) of stake of HDFC being owned by foreigners Parekh said, some 475 foreign investors of different sizes own these stakes and don't pose any threat on the existing management control.
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