CDC sold its stake at over Rs 90 per share. At this price, the deal will cost HSBC around Rs 415 crore. CDC had bought a 26 per cent stake in UTI Bank in 2001 for Rs 157.59 crore.
At the time of going to press, both HSBC and UTI Bank executives were unavailable for comment.
This is the first case of a foreign bank picking up a minority stake in a private Indian bank through this route.
Earlier, ING Bank bought a substantial chunk in Vysya Bank. Bank Muscat is in the process of picking up a 26 per cent stake in Centurion Bank.
Reserve Bank of India rules allow a bank to hold up to a 30 per cent stake in another bank as investment.
However, HSBC will have to seek the approval of the Foreign Investment Promotion Board for its investment in UTI Bank.
The UTI Bank scrip on the Bombay Stock Exchange today hit an all-time high of Rs 96.10 and closed at Rs 95.10, gaining Rs 11.16.
