HDFC Bank plans to issue car loans worth Rs 12,372 crore to mutual funds before the first week of December to bring down its loan-to-deposit ratio. This is part of the bank’s strategy to reduce its loan assets and reach a more sustainable loan-deposit ratio. The bank has been looking to sell off its loan assets, particularly its housing and car loans, through direct assignments and pass-through certificates (PTCs). In September, the bank had issued PTCs worth Rs 10,000 crore to mutual funds at a rate of 8.40%. The current PTC issuance will offer a rate of 8.3-8.4%, similar to its previous PTC issuance. The loan pool consists of 1.83 lakh car loans with a weighted average seasoning of 17.5 months and a weighted average amortization of 23.3%. India Ratings has assigned a AAA (SO) rating to the PTCs, indicating a strong repayment track record. The bank aims to use asset sales, along with deposit accretion, to bring down its loan-deposit ratio to a more industry-average level.
Source: https://www.ndtvprofit.com/business/hdfc-bank-car-loan-ptc-issue-december-loan-deposit-ratio