HDFC stock falls after Citi drops stake

June 14, 2011 11:59

Citigroup today 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 apre-tax profit of about USD 160 million.

Citigroup sold 1.5 per cent holding in HDFC. The move by Citi was aimed at bringing down its holding in HDFC to below 10 per cent in order to avoid setting aside additional capital under the new international Basel-III agreement on bank capital requirements.

Citi held a 11.38 per cent stake in HDFC through Citigroup Strategic Holdings Mauritius and Citigroup Holdings Mauritius as of March 31, 2011.

Reacting to the news, shares of HDFC fell by 2.20 per cent to touch an early low of Rs 643 on the BSE.

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