HDFC picks up 41% in DSP Merrill Lynch unit

HDFC has announced that it would acquire approximately 41% in the fully diluted equity share capital of HDFC 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 HDFC Credila by paying around Rs 10 crore. This deal is expected to be sealed within two months time. If need arises, we may buy HDFC 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.

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