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According to The Economic Times, Baring Private Equity Asia EQT is acquiring Credila Financial Services, the educational loan unit of Housing Development Finance Corp. HDFC Credila established in 2006, India's first specialized education loan company.
We can expect the acquisition to range between $1.3 billion and $1.5 billion. The deal will see the buyout fund obtaining a 90% stake in Credila, while HDFC will keep the remaining 10%.
It may sell within the next two years. Baring Private Equity Asia EQT is to announce the sale of Credila Financial Services by the end of June. This announcement will precede the merger of HDFC Ltd and HDFC Bank Ltd, which makes it the world's fourth-largest bank.
To ease the transaction, Baring has formed a consortium with ChrysCapital.Furthermore, the regulator also imposed restrictions on HDFC Credila's ability to onboard new customers.
Motilal Oswal Financial Services, a brokerage firm, recently conveyed its optimism about HDFC Bank's capacity to sustain a strong growth trajectory. Meanwhile, HDFC Bank is positioning itself to capitalize on fresh avenues for expansion.
It will include mortgage assets, improved cross-selling strategies to enhance customer loyalty, and accelerated development of its digital services. The bank will invest in branches and digital infrastructure to support growth goals.
A notable event in the financial sector is the upcoming acquisition of Credila Financial Services by Baring Private Equity Asia EQT and its consortium partner ChrysCapital. The deal complies with HDFC's regulatory requirements and sets the stage for the bank's impending merger with HDFC Bank Ltd. It will enhance the latter's position as a formidable international banking organization.
— Harshita Kumar
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