People's bank of China buys 1.75 crore shares in HDFC amid coronavirus pandemic

The development comes at a time when the share price of the lender has plunged by a significant amount.

By James Kuanal
Updated: Sun, 12 Apr 2020 01:00 PM IST
Minute Read
People's bank of China buys 1.75 crore shares in HDFC amid coronavirus pandemic

New Delhi | Jagran Business Desk: What comes as a major development for the Indian financial sector, the People's Bank of China has acquired 1.75 crore shares 1.01 per cent stake in one of the largest housing finance lenders, HDFC Ltd during the quarter ending March, according to data submitted by the company at the Bombay Stock Exchange.

Speaking to CNBC-TV18, Keki Mistry, Vice Chairman and CEO of HDFC Ltd said that People's Bank of China held 0.8 per cent stake as of March 2019 and it has soared by over 0.2 per cent as of March 2020 to 1.01 per cent. 

The development comes at a time when the share price of the lender has plunged by a significant amount.

During the last one month, the stock prices of HDFC fell over 25 per cent amid the beating across stocks due to the coronavirus crisis.

Also Read: HDFC bank deposits soar 24 per cent in Q4 to reach Rs 11.46 lakh crore

The Foreign portfolio investors (FPIs) hold 70.88 per cent stake in the company which also includes a 3.23 per cent shareholding of the Government of Singapore.

As of now, the shares of HDFC are at Rs 1,701.95 per share on the BSE.

During the recent years, China has significantly increased its investments in Asian countries, including Bangladesh and Pakistan, mainly in technology and infrastructure companies.

The People's Bank of China holds stakes in companies across the world, including BP Plc and Royal Dutch Shell Plc.

In 2014, it had had picked up stakes in several high profile Italian companies during the Eurozone debt crisis. Prior to that in 2017, the bank had acquired 0.46 per cent stake in BG group-- third-largest gas producer in Britain.

(with IANS inputs)

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