Bank of Baroda has agreed to sell 4 per cent stake in Clearing Corporation of India limited (CCIL) to HDFC Bank for an aggregate sum of Rs 124 crores.

The transaction is awaiting RBI's approval.

CCIL, incorporated in 2001, is engaged in the business of clearing and settlement services for transactions in the Money Market, Government Securities Market, Foreign Exchange Market among other related financial activities.

CCIL is also authorised as a Payment System provider under 'The Payment and Settlement Systems Act, 2007' by Reserve Bank of India.

HDFC bank already holds 5 per cent of the total equity capital in CCIL. The proposed transaction would increase HDFC bank's stake in CCIL to 9 per cent. As per HDFC bank, the transaction is purely from an investment objective.

Twenty lakh shares are proposed to be acquired from Bank of Baroda by HDFC Bank and the transaction if approved by RBI would be completed by the end of December 2018.

Consideration per share amounts to Rs 620. Totalling to Rs 124 crore.

CCIL has earned stable revenues of Rs 679.05 crore, Rs 758.18 crore and Rs 629.05 crore in FY18, FY17 and FY16 respectively.