HDFC Bank, the country’s largest private sector lender, has securitised new car loans valued at just over ₹12,700 crore by issuing pass-through certificates (PTCs). This significant transaction aims to provide liquidity for the bank, reflecting its strategic efforts to optimise its balance sheet and fund further growth.
The securitisation process involves assigning a pool of new car loans originated by HDFC Bank to a trust, which then issues the PTCs to investors. According to a statement by India Ratings released on Friday, the securitised assets represent high-quality loans, enhancing investor confidence in the transaction. This move underscores HDFC Bank’s active role in leveraging securitisation to manage its loan portfolio efficiently.
As of the end of September 2024, HDFC Bank’s gross advances stood at ₹25.19 trillion. Within this portfolio, auto loan assets under management (AUM), including new car loans, amounted to ₹1.3 trillion. This highlights the significant contribution of the automobile financing segment to the bank’s overall lending operations.
The securitisation is expected to generate substantial liquidity, enabling the bank to strengthen its lending capacity further. By freeing up capital through this transaction, HDFC Bank can continue to support the growing demand for vehicle loans and other retail credit segments in an expanding market.
HDFC Bank’s strategic focus on securitisation not only ensures an efficient use of resources but also reaffirms its leadership in the auto-finance sector. This latest transaction marks another milestone in the bank’s efforts to innovate and grow while meeting the evolving needs of its customers and investors.
