Housing finance major, HDFC has decided to try a new route to increase its distribution of home loans. The bank is allying with other banks to sell home loans for it.
In this regard, the lender has signed a Memorandum of Understanding (MoU) with private sector lender, IndusInd Bank. HDFC would be utilizing the 300 branch count of IndusInd Bank to attain better penetration in the distribution of its home loans.
All operational divisions, like rocessing, disbursement and servicing functions will be handled by HDFC.
Yes Bank is also in talks with HDFC in this regard.
Speaking on the issue, MD of the bank, Mr Romesh Sobti said that the mortgage market is one in which economies of scale can be enjoyed by bigger players.
"The bigger players get good margins. Our strength is origination and distribution. So we will do that," he said.