HDFC picks up 41% in DSP Merrill Lynch unit

12 December 2009

HDFC has announced that it would acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services Pvt Ltd, a lender specialised in giving education loans from DSP Merrill Lynch Capital Ltd. VS Rangan, senior general manager, treasury, HDFC, said: "We have decided to buy a 41% stake in Credila by paying around Rs 10 crore. This deal is expected to be sealed within two months time. If need arises, we may buy Credila by acquiring a major stake in future as education loan business is an attractive business that is currently growing at around 30% in our country.? This is the first investment of HDFC in an education-loan providing company. Currently, HDFC has an educational loan portfolio of Rs 10-15 crore.