The world's local bank
HSBC completes acquisition of minority stake in India’s UTI Bank
10 June 2004
Following HSBC's announcement on 2 December 2003 of an agreement to acquire a minority interest in UTI Bank Limited, the Group has today completed its acquisition of a 14.62 per cent stake in the bank, having obtained approval from the Reserve Bank of India.
HSBC's acquiring entity, HSBC Asia Pacific Holdings (UK) Limited, has paid a consideration of US$67.6 million in cash for the 14.62 per cent stake in UTI Bank. HSBC has acquired the equity shareholdings in UTI Bank from CDC Financial Services (Mauritius) Limited and South Asia Regional Fund.
Michael Smith, CEO of The Hongkong and Shanghai Banking Corporation Limited, said: “UTI Bank is a well-managed local financial institution, and our investment in it will give HSBC greater participation in India's fast-growing financial sector. We have had a long history in India of over 150 years and with this new investment we aim to strengthen our presence in this dynamically growing economy.”
With over 250 branches and extension counters and more than 1,200 ATMs nationwide, UTI Bank has the second largest retail banking network amongst private sector banks in India. It offers a comprehensive range of corporate banking, retail lending and deposit products and an internet banking service to its one million customers. UTI Bank is listed on the Mumbai, Ahmedabad and National stock exchanges in India and had deposits of INR209.54 billion (US$4.83 billion) at 31 March 2004.
The remaining 85.38 per cent interest in UTI Bank is held by a number of entities, including government institutions and corporate investors and individual shareholders.
HSBC in India
The Hongkong and Shanghai Banking Corporation Limited in India offers a full range of banking and financial services from its 35 branches in the 18 cities of Ahmedabad, Bangalore, Chandigarh, Chennai, Cochin, Coimbatore, Gurgaon, Hyderabad, Jaipur, Kolkata, Ludhiana, Mumbai, New Delhi, Noida, Pune, Thane, Trivandrum and Visakhapatnam, and some 150 ATMs across the country. HSBC has a credit card base of some 700,000 customers in India and is one of the leading merchant acquirers in the Indian credit cards industry.
Links to web sites
Useful tools
Increase font
Decrease font