HDFC to Make Pro­vi­sion of 450 crore

The Economic Times - - Companies -

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.

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