Moneycontrol PRO
HomeNewsBusinessMUFG’s talks for minority stake in HDB Financial said to be stalling

MUFG’s talks for minority stake in HDB Financial said to be stalling

HDFC could consider an initial public offering of the consumer lending unit as an alternative, one of the people said

July 03, 2024 / 16:45 IST
MUFG’s talks for minority stake in HDB Financial said to be stalling

Mitsubishi UFJ Financial Group Inc.’s negotiations for a minority stake in HDFC Bank Ltd.’s consumer lending unit are stalling due to differences over how much say it will have in company strategy, according to people familiar with the matter.

While MUFG is still interested in HDB Financial Services Ltd., the talks may face further delays or even fall apart, the people said, asking not to be identified because the matter is private. HDFC could consider an initial public offering of the consumer lending unit as an alternative, one of the people said.

No final decisions have been made and negotiations could get back on track if the Japanese lender is offered a significant say in HDBF’s business strategy, according to the people.

A representative for MUFG declined to comment. HDFC Bank didn’t immediately respond to a request seeking comment.

MUFG has been seeking to build its presence in India, where HDBF offers services such as personal, gold and auto loans. Bloomberg News reported earlier this year that MUFG, Japan’s biggest lender, was in talks for a 20% stake for about $1.7 billion. MUFG has considered sweetening its offer, people familiar with the matter have said.

Facing sluggish growth at home, Japanese lenders such as MUFG and Sumitomo Mitsui Financial Group Inc. have been scouring for deals in Asia to boost revenues while also building out their investment banking operations.

Bloomberg
first published: Jul 3, 2024 04:45 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347