HSBC open offer today for 20% more stake in UTI Bank

However, Smith said: “As a 20 per cent shareholder, we expect a berth on the UTI Bank board to be offered to us.”

Smith pointed out that as per the terms with CDC Capital Partners, from whom HSBC proposes to acquire the 20 per cent stake, HSBC will not automatically get a place on the board of UTI Bank. However, experts say that once these seats fall vacant, there is every likelihood of these being offered to HSBC, specially when they are about to become the largest shareholder in the bank. Late on Tuesday, HSBC announced its intention to acquire 20 per cent stake of CDC Capital Partners at a price of Rs 90 per share.

Replying to a query on the possible synergies between HSBC and UTI Bank, Booker said: “We will explore if there are synergies between the products and platforms of HSBC and UTI Bank and would do what is best in the interest of shareholders of both the banks. Any such deal would be on an arms-length basis.”

“The deal to acquire minority stake in domestic banks is in line with our strategy for two key markets in Asia — India and China. We have also made a similar deal in China recently,” Smith said.

The multinational bank is also looking to acquire similar stakes in other domestic banks though the officials did not disclose any details. “We are looking at a number of opportunities if they exist, though we do not have a shopping list. We are a financial services group and are looking at stakes in sectors like banking, insurance, etc,” Booker said.