New York/Mumbai, June 14: Citigroup on Tuesday said it has reduced its stake in mortgage lender HDFC to 9.9 per cent from 11.4 per cent, a deal the US bank said would give it a pre-tax profit of about USD 160 million.
Citigroup sold 1.5 per cent holding in Housing Development Finance Corp (HDFC). “Reducing its holdings in HDFC to below 10 per cent is part of Citi’s mitigation efforts ahead of the adoption of Basel-III capital rules,” Citigroup said in a statement.
Citigroup said it had no plans to sell any additional shares of HDFC. “This transaction was motivated by our capital planning as we prepare for the implementation of Basel-III, rather than strategic considerations,” Citigroup Chief Financial Officer John Gerspach said.
—-(PTI)