HDFC to Make Provision of 450 crore
Mumbai: HousingDevelopment Finance Corp (HDFC) will make an additional one-time provision of ₹ 450 crore in the quarter ended March after it made ₹ 1,705 crore on the sale of shares in its life insurance c o mpany HDFC StandardLifeInsurance,thecompany said in a filing to the BSE.
InadisclosuretotheBSE,HDFC said the additional provision will act as an “additional buffer against any unexpected risk in the future.”
HDFC completed the sale of 9% of its stake in HDFC Standard Life Insurance to its British joint venture partner Standard Life on March 31 after foreign insurance companies were allowed to hike their stake to up to 49% from 26% last fiscal. HDFC will continue to be a majority shareholder in the company owning 61.65% of stake in the life insurance company.
HDFC said total profit on sale of investments including the sale to Standard Life in the quarter ended March 2016 will be ₹ 1,520 crore compared to ₹ 225 crore in the quarter ended March 2015.