RBI relaxes restrictions on HDFC Credila regarding addition of new customers (updated)

Housing Development Finance

27/06/2023 15:39

(Adds background)
       BENGALURU, June 27 (Reuters) - Housing Development
Finance Corporation (HDFC)  HDFC.NS  on Tuesday said the Reserve
Bank of India has relaxed restrictions on its education finance
arm, HDFC Credila, related to the addition of new customers.
    The restrictions were eased after the company met RBI's
condition that the application for change in the shareholding of
HDFC Credila as a non-banking finance company be made to the
central bank before July 31, 2023, according to the filing.
    Also as a directive for the HDFC and HDFC Bank  HDBK.NS 
merger, the RBI had asked the company to cut its stake in the
education finance unit to 10% over the next two years, and stop
onboarding new customers.
    HDFC had, in April last year, announced a $40 billion deal
to merge with HDFC Bank, to create a financial services titan to
better tap rising demand for credit. 
        Last week, HDFC announced that BPEA EQT and ChrysCapital
will 
    buy a 90% stake
     in HDFC Credila for 90.60 billion rupees.
  
        After the stake sale, HDFC will retain a 9.99% share in
the unit.
  

 (Reporting by Yagnoseni Das in Bengaluru; editing by Eileen
Soreng)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))