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

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.

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"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.