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HDFC Bank may sell down, securitise home loans at right time as price competition intensifies: Jagdishan

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HDFC Bank may sell down, securitise home loans at right time as price competition intensifies: Jagdishan

HDFC Bank may sell down, securitise home loans at right time as price competition intensifies: Jagdishan

HDFC Bank’s home loans will remain a “main pillar” for customer acquisition, outgoing CEO Sashidhar Jagdishan said, as intense price competition has made the product quite commoditised, and that Anup Bagchi (incoming CEO) and his team potentially exploring a “far more alternate strategy on selling down or securitising” home-loan assets at the right time.

Home loans to remain a “main pillar” of customer acquisition at HDFC Bank, Jagdishan said

95%+ of home-loan customers acquired over the past three years have multiple products, including a savings account

Around 60% of the bank’s overall home-loan portfolio now has customers paying EMIs through HDFC Bank accounts

Mortgage book stood at Rs 9.21 lakh crore in September, up 7.5% YoY and 2.2% sequentially

Jagdishan said intense price competition has made home loans “quite commoditized”, with the bank willing to let go of deals where margins do not make sense

Largest private sector lender HDFC Bank may look at selling down or securitising some of its home-loan assets as and when market conditions are favourable, a move that could give the lender greater flexibility to compete on pricing while continuing to build deeper relationships with home-loan customers, outgoing Managing Director and CEO Sashidhar Jagdishan said. Jagdishan said home loans would continue to be a key customer-acquisition product for the bank because of the broader and more sticky banking relationship that comes with the product. “On home loans, as I said, it's a great product and a very high on emotional quotient for any institution to buy.


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