HSBC to acq stake in UTI Bank

HSBC Holdings PLC
02 December 2003


              HSBC SIGNS AGREEMENT TO ACQUIRE A STAKE IN UTI BANK

HSBC Asia Pacific Holdings (UK) Limited, a wholly owned subsidiary of The
Hongkong and Shanghai Banking Corporation Limited, has entered into an agreement
to acquire a 14.71 per cent equity stake in UTI Bank Limited, a retail bank in
India, from CDC Financial Services (Mauritius) Limited and South Asia Regional
Fund, for a consideration of INR3.06 billion (US$66.42 million). In addition,
HSBC will have the option to acquire an additional 5.37 per cent of UTI Bank
Limited from CDC Financial Services (Mauritius) Limited at a consideration of
INR1.12 billion (US$24.26 million).

HSBC will also be making an open offer to UTI Bank's shareholders to buy at
least an additional 20 per cent of UTI Bank at an offer price of INR90 per share
(US$1.95 per share). This offer is in accordance with Indian regulations.

With some 200 branches and extension counters and over 1000 ATMs nationwide, UTI
Bank has one of the largest retail banking networks amongst private sector banks
in India. It offers a comprehensive range of corporate banking, retail lending
and deposit products and an Internet banking service to its 1 million customers.
UTI Bank was established as a private sector bank in 1994, by Unit Trust of
India (UTI), which is owned by the Government of India and is India's first and
largest asset management company. UTI Bank is listed on the Mumbai, Ahmedabad
and National stock exchanges in India and had deposits of INR166 billion (US$3.6
billion) at September 2003.

David Eldon, Chairman of The Hongkong and Shanghai Banking Corporation Limited,
said: "This is an investment in a well managed local financial institution which
will allow us to participate more fully in the fast growing financial sector in
India. We have had a long history in India of over 150 years and with this new
investment, we aim to strengthen our presence in this dynamically growing
economy."

The agreement and open offer are subject to regulatory and other approvals and
are expected to be completed by April 2004.

The remaining 79.92 per cent interest in UTI Bank is held by a number of
entities and shareholders including government institutions, corporate investors
and individual shareholders.

Notes to editors:

1. The HSBC Group

HSBC in India offers a full range of banking and financial services from its 34
branches in the cities of Ahmedabad, Bangalore, Chandigarh, Chennai, Gurgaon,
Hyderabad, Kolkata, Mumbai, New Delhi, Pune, Trivandrum and Visakhapatnam and
over 150 in-branch and off-branch ATMs across the country. HSBC has a credit
card base of over 650,000 customers in India and is the largest credit card
merchant acquirer in the Indian credit cards industry.

The Hongkong and Shanghai Banking Corporation Limited is a principal and
founding member of the HSBC Group which, with more than 9,500 offices in 79
countries and territories and assets of US$983 billion at 30 June 2003, is one
of the world's largest banking and financial services organisations.

2. Advisers to the HSBC Group

HSBC Securities and Capital Markets (India) Private Limited advised the HSBC
Group on the transaction.


                      This information is provided by RNS
            The company news service from the London Stock Exchange