HDFC seals $1.1 billion worth syndicated loan for affordable housing
A syndicated loan is ordinarily a significant loan given to an enormous borrower by several lenders together.
Share price of Housing Development Finance Corporation (HDFC) jumped nearly 3 per cent on Tuesday in an otherwise subdued market after the company said its disbursements in the individual loan category have grown by 26 per cent during the third quarter ended December 2020.
On the S&P BSE Sensex, at 12.44 p.m., HDFC’s shares hit a new record high of Rs 2,645.30, up by 2.56 per cent.
On the NSE, the scrip was trading at 2.70 per cent higher at Rs 2,648.00.
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The individual loan business continued to see improvements during the December quarter, HDFC Ltd said in a regulatory filing.
“Disbursement growth over the corresponding quarter of the previous year was 26 per cent. For the nine months ended December 31, 2020, individual loan disbursements stood at 86 per cent of the levels in the corresponding period of the previous year,” it said.
During the quarter ended December 31, 2020, the profit on sale of investments was Rs 157 crore, it said, adding this was on account of the sale of 25,48,750 equity shares of HDFC Life Insurance Company Limited (HDFC Life).
In the past, company’s shares outperformed by rising 17 per cent, as compared to rise of 7 per cent on BSE Sensex. However, in past it underperformed by rising 6 per cent, as compared to 16 per cent rally in the benchmark index.
HDFC’s shareholding in HDFC Life now stands at 49.99 per cent. This has met the RBI’s mandate of reducing its shareholding in HDFC Life to 50 per cent or below by December 16, 2020, it added.
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