HDFC Bank to grow loan securitisation business over next few years, CFO says
HDFC Bank, India's largest private lender by assets, will grow its loan securitisation business over the next few years to meet rising investor demand, the bank's chief financial officer said.
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The bank will continue to build this business as a way to create space for fresh loans without bulking up its balance sheet, CFO Srinivasan Vaidyanathan said in an interview late on Thursday.
Loan securitisation involves bundling of loans and slicing them into new investments.
«We do believe this is a strategic initiative… I believe that over a three-year to five-year period, it would be substantial,» Vaidyanathan said, but declined to share a target for loan sales.
The bank has sold 463 billion rupees ($5.30 billion) in loans through securitisation so far this financial year.
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