MUMBAI, Sept 19 (Askume) – India’s largest private lender HDFC Bank (HDBK.NS) expects to complete a loan sale programme worth over 90 billion rupees ($1.08 billion) by the end of September – its biggest ever – three sources briefed on the matter said on Thursday.
The sources requested anonymity as they were not authorised to speak to the media.
HDFC Bank did not immediately respond to Askume queries.
HDFC Bank’s merger with parent Housing Development Finance Corporation in July 2023 added a large mortgage pool to the bank’s portfolio but reduced deposits significantly. This increases the pressure on banks to accelerate deposit growth or slow loan growth.
The bank is issuing pass-through certificates backed by a series of auto loans.
India Ratings has assigned an interim AAA(SO) rating to these instruments and said the outstanding amount in the collateral pool as on August 31 stood at Rs 9,062 crore.
The rating agency said the provisional rating is based on HDFC Bank’s origination, servicing, collection and recovery capabilities.
“The bank is already working with investors, including mutual funds, some corporates and some non-banking financial companies, who will invest in these instruments,” a source said.
The pass-through certificates are divided into three tranches and will mature in September 2026, July 2027 and September 2030, and will cover loans of Rs 35 billion, Rs 18 billion and Rs 37.62 billion, respectively.
(1 USD = 83.6180 Indian Rupees)
