RBI relaxes restrictions on HDFC Credila regarding addition of new customers

BENGALURU (Reuters) -Housing Development Finance Corporation (HDFC) on Tuesday said the Reserve Bank of India has relaxed restrictions on its education finance arm, HDFC Credila, related to the addition of new customers.

The restrictions were eased after the company met RBI's condition that the application for change in the shareholding of HDFC Credila as a non-banking finance company be made to the central bank before July 31, 2023, according to the filing.

Also as a directive for the HDFC and HDFC Bank merger, the RBI had asked the company to cut its stake in the education finance unit to 10% over the next two years, and stop onboarding new customers.

HDFC had, in April last year, announced a $40 billion deal to merge with HDFC Bank, to create a financial services titan to better tap rising demand for credit.

Last week, HDFC announced that BPEA EQT and ChrysCapital will buy a 90% stake in HDFC Credila for 90.60 billion rupees.

After the stake sale, HDFC will retain a 9.99% share in the unit.

(Reporting by Yagnoseni Das in Bengaluru; editing by Eileen Soreng)