MUFG, the Japanese banking giant
People familiar with the matter report that Bank of Tokyo-Mitsubishi UFJ (MUFG), the Japanese banking giant, is in the process of acquiring a 20% ownership in HDB Financial Services, a non-banking subsidiary of HDFC Bank, at a valuation ranging between $9-10 billion, in anticipation of its upcoming IPO. Sources suggest that the final decision is expected to be made at the HDFC Bank board meeting next week. Upon confirmation, this deal is poised to rank among the largest transactions in India’s shadow banking sector.
Mails sent to HDFC Bank and MUFG did not immediately generate a response.
The significance of HDB’s IPO arises from the company’s obligation to list before September 2025 to comply with Reserve Bank of India regulations. As of March 31, 2023, the firm operates 1,492 branches nationwide and ranks among the largest listed finance companies based on market capitalization. On January 17, HDFC Bank’s CFO, Srinivasan Vaidyanathan, emphasized that the bank has until September 2025 to list HDB Financial Services. He further mentioned that preparatory work on the IPO would commence shortly.
