HDFC Life Insurance IPO likely in 2 years: Deepak Parekh

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HDFC Life Insurance IPO likely in 2 years: Deepak Parekh

HDFC Life Insurance is likely to go public in the next two years, says HDFC chairman Deepak Parekh.

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Excerpts from What's Hot on CNBC-TV18 Watch the full show » HDFC BSE | NSE 23/05/12 Are Mutual Funds betting on HDFC?

HDFC Life Insurance is likely to go public in the next two years, says HDFC chairman Deepak Parekh.

"We are planning to come up with an IPO for insurance in two years," HDFC Chairman Deepak Parekh said at the annual general meetin (AGM) of the company.

Parekh said the new Insurance Regulatory and Development Authority (IRDA) guidelines that allow life insurers to float an IPO without three year profitability clause would help but said the firm would need to discuss about it with its partner Standard Life.

He said Standard Life would have to increase its stake to 49% from the current 26%, so that part of its shares (the increased stake) can be offered to the investors.

IRDA is planning to allow the foreign investor to increase stake to 49% from 26% at present.

In a recent move, IRDA had allowed insurance companies to go public only if they have been operation for 10 years. For a long time, companies like ICICI Prudential, SBI Life and HDFC Life Insurance have been waiting on the sidelines for a go-ahead for IPO as per norms issued by IRDA.

HDFC's loan disbursements up 20% in Q1, bottomline up 22%

Meanwhile, Parekh is not expecting any slowdown in credit yet. However, he is seeing rates rising by another 50 basis points (bps) in this fiscal.

"I think in this fiscal it (the rates) will go up by50 basis points maximum. It will be two doses of 25 basis points each till March 2012," Parekh told reporters on the sidelines of HDFC's annual general meeting.

HDFC reported a net profit of Rs 844.53 crore for the April-June quarter, up 22% year-on-year, but slightly below Rs 850 crore that the market was expecting, according to a CNBC-TV18 poll. Net interest income for the quarter grew 19.4% year-on-year to Rs 1286, just about what the market was expecting.

For the June quarter, loan approvals grew 22% year-on-year and loan disbursements grew 20%.

(With inputs from PTI)