Industry

‘HDFC open to buying retail portfolios of HFCs’

Mortgage lender HDFC Ltd. is open to buying out retail portfolios of housing finance companies (HFCs) looking to raise resources.

Most HFCs are facing a liquidity crunch with banks becoming reluctant to extend loans as the shadow banking sector fights a crisis of confidence post the debt default of IL&FS in September last year.

“We are not looking at buying out the companies. We can buy retail, individual portfolios only,” Keki Mistry, vice-chairman and CEO, HDFC told reporters on the sidelines of an event when asked if the company was looking to acquire stressed HFCs.

Deepak Parekh, chairman, HDFC Ltd. said there was adequate liquidity in the banking system with the Reserve Bank of India is infusing money through open market operations.

“So far as liquidity is concerned, RBI is doing open market operations… they are buying government bonds and putting liquidity in the system.

“So, there is adequate liquidity in the banking system. Now it is up to individual banks whom to lend to and whom not to lend to,” Mr. Parekh said.

“In the affordable housing space, we see phenomenal growth happening. High-value flats...there is a slowdown in demand in the last six months,” he added.

Mr. Mistry agreed that though liquidity had turned into surplus mode in the system but banks were still reluctant to lend to NBFCs.

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Printable version | Apr 14, 2021 2:36:14 PM | https://www.thehindu.com/business/Industry/hdfc-open-to-buying-retail-portfolios-of-hfcs/article28078233.ece

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