RBI eases restrictions on HDFC Credila’s customer onboarding

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The Reserve Bank of India (RBI) has eased restrictions on onboarding new clients by HDFC Credila Financial Services, parent company Housing Development Finance Corporation has informed the exchanges.

The dilution is subject to the request for a change in ownership of HDFC Credila as an NBFC, which was put forward by the Central Bank before July 31, with confirmation that HDFC Bank’s stake in HDFC Credila will be reduced to 10 percent by March 31, 2024.

In April, the Reserve Bank of India (RBI) allowed HDFC Bank to continue to hold HDFC’s stake in HDFC Credila, subject to a reduction of the stake to 10 per cent within two years from the date of HDFC’s merger with HDFC Bank. However, it prevented the company from onboarding new clients.

last week, HDFC announced the sale of 90 percent of its shares in wholly owned subsidiary HDFC Credila to Baring PE and ChrysCapital for ₹9,060 crore, which will include a capital injection of ₹2,000 crore by the PE companies.

Following the proposed transaction, HDFC Credila will cease to be a subsidiary of HDFC, and the latter’s shareholding will be reduced to less than 10 percent of HDFC Credila’s total issued and paid-up share capital. HDFC will continue to hold one seat on Credila’s board of directors.

HDFC said it expects to receive regulatory approvals for the deal within 15-30 days.