HSBC takes an option on India

British bank gambles on rule change through acquisition of UTI Bank stake.

HSBC's agreement last week to acquire a stake in UTI Bank took the market by surprise but represents another shrewd move by the world's local bank. The 14.72% stake cost HSBC $66.42 million and comes with a three-month option to buy a further 5.37% at the same price per share.

At just 1.6x book value that looks like a good deal for HSBC. Needless to say, it would rather control the bank outright, but given the Reserve Bank of India's restrictions on foreign ownership of private banks HSBC is doubtless content to get its foot in the door and wait to see if the rules change further down the line, as...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222