January 18, 2022

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People’s Bank Of China acquires 1% stake in HDFC; Rahul Gandhi warns Govt

MUMBAI: China’s central bank (People’s Bank of China) has acquired 1% stake in the country’s largest mortgage company HDFC, the Indian lender said in a filing on Saturday. According to BSE data, People’s Bank of China held nearly 17.5 million shares in Housing Development Finance Corporation (HDFC), as of March end. HDFC shares plunged 25% in the last month amid broader weakness in the markets due to the rapidly-spreading coronavirus epidemic.

Headquarters of PBOC
(Photo: Reuters)

HDFC’s Vice Chairman and CEO Keki Mistry has said that People’s Bank of China (PBOC) had increased its stake in the company from 0.8 % to 1.01 % over the last year. This particular development seems to have sparked off a lot of reactions including one from Congress Leader Rahul Gandhi. Without naming HDFC by name Rahul Gandhi says, “The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers.” Rahul Gandhi said that the Government must not allow foreign investors to take control of any Indian corporate at this time of emergency situations in the country. BJP leader and Member of Parliament (MP) Tejasvi Surya drew parallelisms of how the ‘foreign takeover’ of the Congress party had had a disastrous effect on the country. 

I agree with Sri Rahul Gandhi.

Foreign takeovers of our corporations must be viewed with caution.

We have already seen how the foreign takeover of the Congress Party has continued to have disastrous effect on the nation. https://t.co/GmOCbE9xYT

— Tejasvi Surya (@Tejasvi_Surya) April 12, 2020

First originating from China’s “wet markets”, the coronavirus has killed over 114,247 people worldwide as of April 13. In India, coronavirus has infected 9152 people and has killed 308 lives so far.