HDFC Bank, HDFC (Photo: Shutterstock)
India’s largest private lender HDFC Bank expects to complete a planned loan sale worth more than 90 billion rupees ($1.08 billion) – its largest ever – by the end of September, three sources with knowledge of the matter said on Thursday.
The sources requested anonymity because they are not authorized to speak to the media.
HDFC Bank did not immediately respond to a Reuters query.
HDFC Bank merged with its parent Housing Development Finance Corp in July 2023, adding a large pool of home loans to the bank’s portfolio but a much smaller amount of deposits. This has put it under pressure to either increase the pace at which it raises deposits or slow loan growth.
The bank is in the process of issuing transfer certificates backed by a pool of auto loans.
India Ratings has assigned a provisional AAA(SO) rating to these instruments and said the guarantee fund had an outstanding balance of Rs 90.62 billion as of August 31.
The provisional ratings are based on HDFC Bank’s origination, servicing, collection and recovery capabilities, the rating agency said.
“The bank has already tied up with investors including mutual funds, some corporates and also some non-banking financial companies that could subscribe to these instruments,” one of the sources said.
The transfer certificates, divided into three tranches, will mature in September 2026, July 2027 and September 2030, and will have loans worth Rs35 billion, Rs18 billion and Rs37.62 billion, respectively.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 19, 2024 | 16:10 IS
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