NatWest was earlier reported to have expressed its desire to sell its stake in HDFC Bank following the group's decision to move out of its Asian operations.

"We have no current proposal to dispose of our investment in HDFC Bank. Our priority is to ensure the continued steady development of the full range of banking activities of HDFC Bank, particularly in trade finance and in treasury products where the strategic alliance between NatWest and HDFC Bank has shown its greatest strengths. In response to approaches from any interested parties, we have sought to concentrate on how the proven benefits of such a strategic alliance might be maintained," said Roderick Richards, NatWest Group's chiefrepresentative in India.

NatWest group was given a 20 per cent stake in the bank as a strategic alliance partner in May, 1995, before the public issue by the bank. The 20 per cent stake was placed through two private placements of two crore equity shares each to two Mauritius-based Natwest group holding companies at the face value of Rs 10.

According to the agreement while alloting the equity, Natwest was not to sell its stake for the first three years. The lock-in period expired on May 31. There was expectation that with the lock-in period off, NatWest will now look for a buyer who will be acceptable to HDFC, the bank's promoter.