PBOC's stake hike in HDFC ruffles feathers in Finance Ministry: Report

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26 Aug, 2025 12:21

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The news of China's central bank hiking its stake in Housing Development Finance Corporation (HDFC) has ruffled feathers in the Finance Ministry, according to a report in Mint.People's Bank of China (PBOC) raised its stake to 1.01 percent from 0.8 percent in India's largest mortgage lender HDFC, possibly during the last quarter of FY20.

"Normally, there would be no need for xenophobic hysteria over this but a central bank buying an equity stake in a commercial entity is unusual. No red flag was raised," a source told the publication. 

Also Read: People’s Bank of China picks up 1.75 crore shares in HDFC

Moneycontrol could not independently verify the story.

While is there is no law prohibiting central banks of other nations from buying an equity stake in an Indian company, it is unusual. Central banks typically buy bonds of companies in other countries, not equities.

HDFC had informed stock exchanges about PBOC's shareholding on April 11.

"HDFC stock is also owned by SAMA, the Saudi Arabian Monetary Authority (the country's central bank), purchased on behalf of their sovereign wealth fund. Many other sovereign wealth funds also own HDFC and other Indian stocks — funds such as the government of Singapore," HDFC Chairman Deepak Parekh told CNBC-TV18 in an interview.