HSBC exits Axis Bank and YES bank

Hello sir I want to know that is HSBC bank exits the Axis Bank and YES bank or not so please provide me information about the same.

[Shaleen]

Yes UK-based lender HSBC on sold about 4.6 per cent stake each in Axis Bank and YES Bank for Rs 1,880 crore and Rs 550 crore, respectively, through secondary market deals.

About the deals

HSBC held 1.96 crore shares, or 4.75 % in Axis Bank through HSBC IRIS Investment.

Tments Mauritius Ltd, sold the entire stake for about Rs 1,880 crore.

The stake- sale happened at an average price of Rs 958.43 per share, according to bulk data available with the stock exchanges.

The UK- based entity also divested its entire shareholding in another private sector lender Yes Bank for about Rs 545 crore.

It had 4.76 % stake amounting to 1.67 crore shares in Yes Bank through Mauritius based entity HSBC IRIS Investments Mauritius Ltd.

At the current market price, the entire stake is valued at around Rs 550 crore.

Certain issues

The transaction was part of its global strategy to divest stakes in banks and other companies in which it holds stake.

In December 2003, HSBC had bought about 20 per cent in Axis Bank from private equity major CDC.

The government indirectly owns about 23 per cent stake in Axis Bank through a public sector insurance companies.

The British bank had bought the stake in Yes Bank in 2008.