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Report: Vodafone in talks to sell stake in payments bank in India

Vodafone is exploring a sale of as much as a 49% stake in itspayments bank unit, The Economic Times reported April 1, citing"three people familiar with the matter."

Vodafone is in initial talks with HDFC Bank Ltd. and the Piramal Group, the people said. Vodafonehas also held talks with YES BANKLtd. without progress.

Vodafone is looking to cross-sell financial products with itseventual partner.

Vodafone has to sell a 26% stake in the payments bank becauseof a 74% cap on foreign holdings.

Vodafone declined to comment to the Times, while HDFC Bank and YES BANK did not respond to emailed queries.