HDFC Bank is in talks with multiple global Banks are getting rid of almost ₹84 billion in loans to reduce the company’s credit portfolio and align it more with the depositsBloomberg reported on Thursday, citing people with knowledge of the development.
India’s largest private lender is in ongoing talks with banks including Barclays Plc and JPMorgan Chase & Co. ICICI Bank is also part of the talks, the report said.
The terms of the proposed loan portfolio sale have not yet been defined; it would be done through a transfer certificate, a debt instrument, the sources told the news agency.
Queries sent to HDFC BankBarclays, Citi and ICICI Bank remained unanswered, while JPMorgan declined to comment on the development, the report said.
Indian banks are under increasing regulatory pressure to improve their credit-deposit ratios, which show what proportion of a bank’s deposits are being lent to borrowers. Selling loans will help banks improve their credit-deposit ratios. private bank improve the relationship, which has been affected in recent years as credit growth has outpaced deposit growth, according to the agency’s report.
HDFC Bank is also in separate talks with local asset management companies (AMCs) to sell up to ₹100 billion in loans, the news agency reported earlier. The company has already sold ₹According to the report, a $50 billion loan portfolio was handed over to an undisclosed buyer in June.
HDFC Bank Deposit Details:
Private lenders credit According to ICRA, the deposit rate stood at 104 per cent in March 2024, higher than 85-88 per cent in the previous three financial years. The rate increased after the merger of HDFC with its home lender, the report said.
HDFC Bank’s deposits rose 11 percent on an annual basis through August 23, slower than loan growth of 14 percent, according to data from the Reserve Bank of India (Reserve Bank of India), cited in the report. Deposit growth has lagged behind credit for some time, which “could potentially expose the system to structural liquidity problems,” the RBI had said in August.
The bank’s gross advances increased by 52.6 percent to ₹24.9 trillion as of June 2024, year-on-year.
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