HDFC has declined more than 1 per cent today after the People's Bank of China (PBOC) increased its stake in the mortgage lender. The shares in the Mumbai-based company rose as much as 3.5 per cent in early trade, but soon surrendered all their gains. At 11.40 am, the shares were quoting at Rs 1,677, lower by 25 points or 1.4 per cent, on the BSE. The shares touched an intra-day high of Rs 1,763 and a low of Rs 1,648 thus far.
The People's Bank of China increased its stake in Housing Development Finance Corporation (HDFC) to 1.01 per cent from 0.8 per cent in the March quarter, the mortgage lender said in a filing on Saturday. HDFC share price had crashed 30 per cent in March amid the broad-based market selling trigerred by the coronavirus pandemic. The stock however ended with gains of 144 points or 9.2 per cent at Rs 1,701 on Thursday.
Speaking to NDTV, HDFC vice chairman and CEO Keki Mistry said the PBoC has been an existing shareholder in the mortgage lender. The disclosure has been made now since the stake has hit the 1 per cent regulatory threshold, Mr Mistry said. He also said the People's Bank of China has been accumulating the shares for over a year.
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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