HDFC Bank Shares Rise On Plan To Sell Loan Assets Worth Rs 70,000 Crore

Shares of HDFC Bank Ltd. were up 1.25% in trade on Tuesday, as the lender is looking to sell Rs 60,000-70,000 crore worth of loan assets to potential investors, people familiar with the matter told NDTV Profit.

The bank aims to free up liquidity and reduce its credit-deposit ratio, which stood at 105% as of June 30. It is expected to sell mortgage and car loans, primarily through pass-through certificates, with mutual funds and insurance companies likely to be key buyers.

Furthermore, this month, HDFC Bank intends to sell over Rs 9,000 crore in car loans via the PTC channel. This will be the bank's largest PTC sale to date.

Additionally, the bank's board reportedly gave in-principle approval to take its financial services unit, HDB Financial Services Ltd., public through an initial public offering.

HDFC Bank shares rose as much as 1.25% during the day, before paring gains to trade 0.83% higher at Rs 1,774.45 apiece, compared to a 0.11% advance in the benchmark Nifty 50 as of 10:41 a.m.

The stock has risen 15.98% in the last 12 months and 3.89% year-to-date. The relative strength index was at 81.05.  

Of the 47 analysts tracking the stock, 38 maintain a 'buy' rating and nine recommend a 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 5.9%.