HDFC is an Indian non-bank financial company that provides housing finance and mortgages. It has $37bn of total assets as of 31 March 2011.
The US bank said reducing its holdings in HDFC to below 10% is part of its mitigation efforts ahead of the adoption of Basel III capital rules.
Citigroup said The transaction resulted in a pre-tax profit of approximately $160m and it has no plans to sell any additional shares of HDFC.
Citigroup chief financial officer John Gerspach said the Citigroup has been an investor in HDFC since 2005 and continue to have a very strong and productive relationship with its senior management team.
"This transaction was motivated by our capital planning as we prepare for the implementation of Basel III, rather than strategic considerations," Gerspach said.
