Frustrated in its attempts to drum up deposits to bring down its alarming credit-deposit ratio, the private sector lender is left with no option but to put its legacy loan book on the block. Will it find takers?
HDFC Bank has decided to swallow a bitter pill and sell off its builder loans, worth about Rs 1 lakh crore, according to a person with direct knowledge of the matter.
“The bank has decided to sell off its builder loans. This will substantially reduce its loan book,” says this person, requesting anonymity. Four other people, including three from HDFC Bank, have confirmed the development to The Morning Context.
The move is significant given how vital it is for HDFC Bank to trim its almost Rs 25 lakh crore loan book at the soonest, so it can undo some of …
Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.
Editor, Banking
furquan@mailtmc.com
Delhi