HDFC Bank scouts for strategic investor in NBFC arm HDB Financial Services

Months after shelving plans to list its non-banking subsidiary, HDB Financial Services, HDFC Bank has initiated a formal process to rope in a strategic investor. It has appointed Morgan Stanley to handle this and feelers have gone out to global banks and domestic financial institutions. The lender is expecting a valuation of INR 60,000-67,500 crore (USD 8-9 billion). Though the initial discussions are believed to be for a 20-25% stake, some potential suitors are keen on a path to control or joint control. According to reports, this could be a precursor to an eventual listing.