RBI clears HDFC Bank's sale of 90% stake in HDFC Credila

26 Feb 2024 , 10:43 AM

The Reserve Bank of India (RBI) has granted HDFC Bank, a private sector lender in India, permission to sell a group of private equity firms 90% of its education lending subsidiary, HDFC Credila.

Chrys Capital group and BPEA EQT are members of the collaboration. The divestment decision was made eight months following HDFC and HDFC Bank’s merger. The central bank gave HDFC instructions in April 2023 to cut its ownership of Credila to less than 10% over the following two years.

‘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 stated in an exchange filing on February 23. 

The private equity group that has made investments in HDFC Credila consists of Infinity Partners, Kopvoorn B.V., Moss Investments Ltd., and Defati Investments Holding B.V.

The BPEA EQT group includes Kopvoorn BV, whereas the ChrysCapital group includes Moss Investments, Defati Investments Holding B.V., and Infinity Partners. HDFC Credila provides education loans to students pursuing higher education both in India and outside. HDFC Bank will continue to own a 9.99% share in the company. Since its founding, the organization has lent money to over 1.24 Lakh clients, and its total outstanding debt is currently more than ₹15,000 Crore.

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