DBS Group, Southeast Asia's biggest banking institution, has sold its 2.7% stake in Housing Development Finance Corporation (HDFC) during the last week.

A source from Singapore-based bank said that the transaction raised about $260 million for the group.

A DBS spokeswoman stated, “We have divested our 2.7 percent stake in HDFC, a portfolio investment, as we believe this is an opportune time to divest the shares.”

“We divested the shares on Friday,” she added.

Regarding the deal, a source said that DBS has sold 11.62 million shares at Rs 1,110.10 for each share in the open market, for a consideration of Rs 1,290 crore ($262 million).

The stake sale was at a nearly 40% discount to HDFC's closing share price on May 7.

According to reports, DBS Bank held shares representing 2.73% stake in HDFC Bank by the March end quarter.

DBS Bank has also made announcement about the commencement of its division in Bangalore, five months after getting RBI nod.

The bank aims to expand its footprints in the Indian market.

The bank will widen its products and services to MNCs, PSUs, blue-chip businesses, Small/medium-sized enterprises and individual clients in the city.