HDFC sells nearly $717 million of home loans to reduce credit book

HDFC Bank has sold a housing loan portfolio worth Rs 60 billion ($717 million) to reduce its credit load amid regulatory pressures. The portfolio was sold to about half a dozen state-controlled banks through private deals. Additionally, HDFC unloaded another pool of car loans worth Rs 90.6 billion, securitized in a fixed income product called pass-through certificates. The sales aim to improve HDFC’s credit-deposit ratio, which stood at 104% at the end of March, higher than the 85% to 88% rate in the previous three fiscal years. The deals are part of HDFC’s efforts to shrink its retail loan portfolio and address structural liquidity issues in the banking system.