Vodafone is selling off 49% of its payments bank and this is more than required

As payments banks have to follow the foreign investment rules and foreign holding, such as by Vodafone, can't be more than 74%, it is in talks to sell 49% of its payments bank.

This is more than required as it is compulsory for Vodafone to divest 26%.

For this, Vodafone is, reportedly, in talks with the Piramal group and HDFC Bank. Speculations are rife that Vodafone’s talks with Yes Bank could not see the light of the day.

As per reports, Vodafone has issued an open mandate to bankers to find the best partner for its payments bank.

Experts say the Vodafone payments bank is likely to post an annual revenue or savings of $1-1.5 billion over the next three years.

It is yet to see if Vodafone will partner with HDFC Bank as the bank already has core banking and a host of financial services and products in place.