HDFC Bank’s ADR jumps over 6 pc post business performance update
HDFC Bank's ADR jumped by more than 6 per cent on Thursday after the private lender announced its business performance for the fourth quarter.
As the world is fighting COVID-19 outbreak and a dwindling global economy amid Coronavirus lockdown, the People’s Bank of China (PBoC) has increased its stake in the lending major Housing Development Finance Corporation (HDFC) to 1.01 per cent.
The PBoC has currently has nearly 1.75 crore shares in HDFC during the quarter ended March, according to data submitted by the company at the BSE.
The move comes at a time when HDFC’s share prices fell off to 25 per cent in March amid global sell off due to the fear of COVID-19 outbreak. Currently, the shares of HDFC are at Rs 1,701.95 per share on the BSE index making it one of the worst performers this year.
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Currently, foreign portfolio investors hold 70.88 per cent shares in the HDFC Ltd. The Government of Singapore as well, is a stakeholder of 3.2 per cent in the company.
HDFC Vice Chairman and CEO Keki Mistry on Sunday said that the People’s Bank of China has been a shareholder in the company and the disclosure has been made now as its stake has hit 1 per cent.
Mistry said, “The PBOC has been an existing shareholder and had owned 0.8 per cent in the company as of March 2019. The disclosure has been made now since the stake has hit the 1 percent regulatory threshold.”
“They have been accumulating the shares over a year and are now holding 1.01 per cent”, Mistry said.
Institutional investors have shown interest in HDFC recently, with the Life Insurance Corporation of India (LIC) increasing its stakes to 4.67 percent from 4.21 percent in December quarter in the lending major.
The People’s Bank of China holds stakes in companies across the world, including BP Plc and Royal Dutch Shell Plc.
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