HDFC Bank may take 2-5% stake in NCDEX

Following the purchase of 2% stake in Multi Commodity Exchange (MCX), HDFC Bank is now planning to pick up a stake in National Commodity and Derivatives Exchange (NCDEX).

"The bank is exploring options to pick 2-5% stake in NCDEX as it has a large exposure to agriculture commodity financing," a bank official said today.

The bank is keen to establish strong links with all three national commodity exchanges, and would explore options to pick up stake in the Ahmedabad-based National Multi Commodity Exchange (NMCE) in the future, he added.

"Nothing has been finalised yet in picking up the stake with NCDEX.  We have sent out a proposal to the exchange," he added.

P H Ravikumar, MD and CEO of NCDEX, said the exchange "is reviewing" the bank's proposal. "It is too premature to comment. The exchange is analysing the capital requirements for future developments. We will work out different modalities for raising capital - either existing stakeholders put additional money or we raise fresh equity," Ravikumar said.

The stakeholders of NCDEX include ICICI Bank, Life Insurance Corporation of India, Punjab National Bank, Canara Bank and National Bank for Agriculture and Rural Development (Nabard).