HSBC's agreement last week to acquire a stake in UTI Bank took the market by surprise but represents another shrewd move by the world's local bank. The 14.72% stake cost HSBC $66.42 million and comes with a three-month option to buy a further 5.37% at the same price per share.
At just 1.6x book value that looks like a good deal for HSBC. Needless to say, it would rather control the bank outright, but given the Reserve Bank of India's restrictions on foreign ownership of private banks HSBC is doubtless content to get its foot in the door and wait to see if the rules change further down the line, as...
