Citigroup is not likely to sell stake in HDFC

Citigroup doesn’t intent to sell its stake in India’s HDFC, said Keki Mistry, managing director of HDFC. The U.S. bank classified its 12 percent holding in HDFC under the group it refers to as Citicorp, which will hold businesses it wants to keep, Mistry said at an investor conference in Mumbai today. Citigroup Chief Executive Officer Vikram Pandit, struggling to revive the business and repay $45 billion of government aid, has been selling assets to raise capital. Still, Pandit said on Feb. 28 that the company will continue to own banking units in other countries, such as Banamex in Mexico. The bank has also said it was profitable in January and February. "We had a chat with them a month ago and they have kept the HDFC holding under Citicorp," Mistry said. At least four funds are willing to buy the stake if Citigroup opted to sell, he said. Mistry said HDFC’s loans may grow 20 percent in the fiacsl year ending March 2009. In the nine months ended December, its loans grew 22 percent. "We always set a target which we are comfortable with," Mistry said.