Foreign stake ownership: HDFC Bank says law can't apply retrospectively

Apr 21 2014, 21:22 IST
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Under the present laws, with HDFC's 22 per cent stake, foreign holding in HDFC Bank exceeds the permissible limit of 74 per cent. Under the present laws, with HDFC's 22 per cent stake, foreign holding in HDFC Bank exceeds the permissible limit of 74 per cent.
SummaryRemarks come in backdrop of RBI banning FIIs from picking up more shares in HDFC Bank.

be noted that HDFC Bank has also approached the Foreign Investment Promotion Board to raise its foreign holding limit to 67.55 per cent from the present 49 per cent.

When asked if he is expecting a favourable decision from the FIPB, Puri said: "We are hoping so."

On the move by MSCI India Index to reduce its weight on the bank stock, Puri said it is a natural action for a "dispassionate" player like MSCI to do because of the official action.

Meanwhile, on the bank's sustainability initiatives, Puri said it is already devoting 1-2 per cent of its net profit to CSR activities.

"We were doing it without the mandate. We do believe that all corporations owe a due to society. The quantum you can debate, but the fact that you can do something for the society as a corporate citizen is a must," he said.

Scale and sustainability are key for the bank in its CSR efforts, Puri said, specifying that it has been working in the fields of blood donation, sustainability (by uplifting people from below poverty line), education and replacing moneylenders.

Puri said under its sustainability programme the bank has already helped 2.2 million come above the poverty line through interventions on the loan disbursement front which stresses on know-how sharing, and announced that in the next three years it targets to take up the number to 10 million people.

On the blood donation front, where it set a Guinness record for the largest single-day blood drive with 61,902 participants, Puri said the bank will be targeting to take up the total amount of blood collected to 1 lakh units from the 86,000 in 2013.

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