iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Private Banks Securitize Rs 40,000 Cr Loans

29 Nov 2024 , 09:27 AM

In order to increase liquidity and balance their books in the face of poor deposit growth, private sector banks, led by HDFC Bank, have sold about ₹40,000 crore worth of loans this fiscal year, the first such sale in over 20 years.

Just HDFC Bank, which has a severe trouble keeping the credit-deposit ratio stable, has sold over ₹36,000 crore to investors through the bilateral direct assignment (DA) route or by selling pass-through certificates (PTCs).

According to data compiled by ET from rating agencies, IDFC First Bank sold ₹2,142 crore worth of unsecured loans earlier this year, while smaller lender RBL Bank sold ₹381 crore worth of loans.

PTCs are financial products that enable the holder to get principle and interest payments from a group of assets or loans. In India, trusts are used to bundle various instruments together, enabling banks to remove assets from their records.

Bilateral sales of these loan pools between lenders are known as DAs.

Since private sector banks, which are renowned for their emphasis on growth, have seldom ever liquidated assets in decades, analysts referred to it as an unprecedented phenomenon.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • HDFC Bank
  • liquidity
  • Loans
  • Securitization
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2024, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp