HDFC Bank, India’s largest private lender, is set to complete the sale of loans worth over Rs 9,000 crore ($1.08 billion) by the end of September, according to sources familiar with the matter. This marks the bank’s largest loan sale to date.
The loan sale involves the issuance of pass-through certificates (PTCs) backed by a pool of car loans. India Ratings has assigned a provisional AAA(SO) rating to these instruments, with the collateral pool totaling Rs 9,062 crore as of August 31, 2024.
It said the bank has secured commitments from mutual funds, corporates, and non-banking finance companies to subscribe to these certificates. The three tenors of PTCs are due on September 2026, July 2027, and September 2030, carrying loan values of Rs 3,500 crore, Rs 1,800 crore, and Rs 3,762 crore, respectively.
The move comes after HDFC Bank’s merger with Housing Development Finance Corp this July added a significant pool of mortgage loans but fewer deposits, nudging the bank to raise deposits or slow loan growth.
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Source: Moneycontrol
News Desk
