The Chairman of Housing Development Finance Corporation (HDFC), Deepak Parekh announced about introducing an initial public offering (IPO) for its insurance department within a period of two years, at the annual general meeting (AGM).

As per Mr. Parekh, the rules of the Insurance Regulatory and Development Authority (IRDA) granted the insurers to have an IPO without three years profitability clause, the authorities will discuss about the scheme with their partners Standard Life.

In order to implement IPO, the Standard Life was required to increase their stake by 49% which were at present 26%, so that the bank could offer that part of the shares to its customers. ICICI Prudential, SBI Life and HDFC Life Insurance were waiting for the approval of IRDA on IPO. Finally, IRDA had allowed the foreign investor to increase stake to 49% from 26% at present.

HDFC earned a net profit of Rs 844.53 crore from April-June 2011, a growth of 22%, with a growth in the interest rate by 19.4%. The loan approvals this year increased by 22% and loan payments increased by 20%. The company presently was not in favor of any decline in the credit, moreover expecting the RBI to increase its rates by 50 points this year.