Citibank recently announced that they were pulling out their 10% stake in HDFC for ~ $2B USD. We had no idea Citi actually owned 10% of HDFC, but now that we do, we did some digging on why they pulled out.
The official word is that the bank is now subject to Basel III capital regulations, and for any investments in other financial institutions, the regulations require banks to shore up more capital than they would otherwise, so they decided to pull out of what must have been a very well performing investment to avoid doing so.
Bombay Wire 