HDFC in talks with global banks to offload $1 billion in loans

17 Sep 2024 CW Team

HDFC Bank Ltd., India's largest private sector lender, is in discussions with global banks to offload up to Rs 84 billion in loans. The move aims to reduce its credit portfolio and better align it with deposits, according to sources familiar with the matter. Among the banks involved in the ongoing talks are Barclays Plc, Citigroup Inc., JPMorgan Chase & Co., and ICICI Bank Ltd.

The loan portfolio sales are expected to occur through a debt instrument known as pass-through certificates. Although the terms are yet to be finalised, this strategy is part of HDFC's efforts to improve its credit-to-deposit ratio, which has deteriorated in recent years due to credit growth outpacing deposits. JPMorgan declined to comment, while HDFC, Barclays, Citi, and ICICI have not responded to requests for comment.

HDFC Bank's credit-to-deposit ratio stood at 104% at the end of March, significantly higher than the 85% to 88% range in the previous three fiscal years. This increase followed the bank's merger with Housing Development Finance Corp. last year. HDFC's gross advances grew to ?24.9 trillion as of June 2024, marking a 52.6% increase compared to the previous year.

Indian banks are under regulatory pressure to improve their credit-to-deposit ratios, a key measure of lending activity relative to deposits. HDFC's move to sell its loan portfolio is a step toward addressing this issue. Indian banks' deposits grew by 11% annually through August 23, slower than the 14% growth in loans, according to the Reserve Bank of India. The RBI warned in August that this lag in deposit growth "may potentially expose the system to structural liquidity issues." (ET)

Infrastructure Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..