In a major development for the Indian financial sector, the People's Bank of China has taken up 1.01 per cent stake in the lending major Housing Development Finance Corporation (HDFC).

The central bank of China has acquired nearly 1.75 crore shares in HDFC during the quarter ended March, according to data submitted by the company at the BSE.

The development comes at a time when the share price of the lender plunged. During the past one month the stock prices of HDFC fell over 25 per cent amid the beating across stocks due to the coronavirus crisis.

Foreign portfolio investors hold 70.88 per cent stake in the company which also includes a 3.23 per cent shareholding of the Government of Singapore.

Currently, the shares of HDFC are at Rs 1,701.95 per share on the BSE.

The People's Bank of China holds stakes in companies across the world, including BP Plc and Royal Dutch Shell Plc.