HDFC Bank gets RBI nod to sell 90% stake in HDFC Credila to private equity consortium

HDFC's merger with HDFC Bank. In April 2023, the central bank directed HDFC to reduce its stake in Credila to under 10% over the next two years. Also Read | MC Exclusive: Race for HDFC Credila: BPEA EQT, Chrys Capital & Faering Capital consortium in the lead "We have been informed that the RBI has via letter communication dated February 23, 2024 to HDFC Credila, granted its approval to the application submitted by HDFC Credila for seeking prior approval of the RBI under Chapter VI of the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 for the proposed change in control and consequent change in the constitution of the board of directors of HDFC Credila pursuant to the proposed transaction," the HDFC Bank said in an exchange filing. The private equity consortium that has invested in HDFC Credila includes Kopvoorn B.V., Moss Investments Ltd, Defati Investments Holding B.V., and Infinity Partners. Also Read | HDFC signs definitive pact with BPEA EQT-led consortium for sale of HDFC Credila for Rs 9,060 cr Kopvoorn BV is a part of the BPEA EQT group, while Moss Investments, Defati Investments Holding B.V., and Infinity Partners are a part of the ChrysCapital group.

HDFC Bank, a private sector lender in India, has recently received approval from the Reserve Bank of India (RBI) to sell a 90% stake in its education loan subsidiary arm, HDFC Credila, to a consortium of private equity firms.

The consortium includes BPEA EQT and ChrysCapital group. The decision to divest comes eight months after HDFC's merger with HDFC Bank. In April 2023, the central bank directed HDFC to reduce its stake in Credila to under 10% over the next two years.

Also Read | MC Exclusive: Race for HDFC Credila: BPEA EQT, Chrys Capital & Faering Capital consortium in the lead

"We have been informed that the RBI has via letter communication dated February 23, 2024 to HDFC Credila, granted its approval to the application submitted by HDFC Credila for seeking prior approval of the RBI under Chapter VI of the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 for the proposed change in control and consequent change in the constitution of the board of directors of HDFC Credila pursuant to the proposed transaction," HDFC Bank said in an exchange filing on February 23.

The private equity consortium that has invested in HDFC Credila includes Kopvoorn B.V., Moss Investments Ltd, Defati Investments Holding B.V., and Infinity Partners.

Also Read | HDFC signs definitive pact with BPEA EQT-led consortium for sale of HDFC Credila for Rs 9,060 cr

Kopvoorn BV is a part of the BPEA EQT group, while Moss Investments, Defati Investments Holding B.V., and Infinity Partners are a part of the ChrysCapital group. HDFC Bank will maintain a 9.99% stake in HDFC Credila, which offers education loans to students pursuing higher education in India and abroad. The company has provided loans to over 1.24 lakh customers since its inception, and the current loan book stands at over Rs 15,000 crore.