Banking on Bundles: HDFC's Bold Bet to Reshape India's Financial Landscape

India's largest private sector lender, HDFC Bank, is looking to substantially increase its loan securitisation business in the next 3-5 years. CFO Srinivasan Vaidyanathan made this strategic decision to fulfill increasing investor demand and effectively manage the bank's balance sheet. The bank has already securitised 463 billion rupees ($5.30 billion) worth of loans in the current fiscal year. It looks to make room for new loans without padding out the balance sheet and to lower the loan-to-deposit ratio, which swelled following the merger with parent HDFC during July 2023. It is looking to increase deposits faster than loans and is specifically targetting lower-cost retail deposits.
Source: Reuters