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CRISIL

Keki Mistry, Vice Chairman & CEO, HDFC, says that since they have not seen any rate hike recently, the full benefit now of the rate hikes is now in the system. From here onwards, logically the spread should be more or less stable. So, spreads have remained stable at 2.29%. Net interest margin has actually moved up. Our net interest margin last year was 3.5%. This year it stands at 3.6%.

HDFC Credila Financial Services Limited

Anti-trust regulator CCI cleared the proposed purchase of 90 per cent equity stake in HDFC Credila Financial Services by a private equity consortium of BPEA EQT and ChrysCapital. The buyers are Kopvoorn, part of the BPEA EQT group, and three ChrysCapital group entities -- Moss Investments, Infinity Partners and Defati Investments Holding.

CCI clears proposed acquisition of HDFC Credila Financial Services

Sovereign fund Abu Dhabi Investment Authority (ADIA) is in talks with EQT Baring Private Equity to acquire a 10% stake in education financier HDFC Credila Financial Services. The stake sale could be part of a broader fundraising effort at Credila or a secondary transaction with EQT Baring, a person aware of the matter said. “Talks are on with EQT about picking up a stake in Credila. The deal may not be a significant premium to the price at which EQT took a stake in the company,” the person said, requesting anonymity. Housing Development Finance Corp. sold a majority stake in its education loan unit, Credila, to comply with regulatory restrictions imposed by the Reserve Bank of India following its merger with HDFC Bank. EQT and ChrysCapital picked up 72 percent and 18 percent stake, respectively (collectively 90 percent from HDFC Ltd), for Rs 9,553 crore in March

ADIA may buy 10% of HDFC Credila from EQT Baring

The entire portfolio is concentrated towards education loans with a high share of the book under principal moratorium. The ability to maintain the asset quality through business cycles will remain a monitorable.

The issuer has made timely interest payments.

Mr. Arijit Sanyal, Managing Director & CEO

The company benefits from the parent’s operational and financial support in the form of a shared branch network as well as manpower, and fund-raising support. HDFC has also regularly infused equity capital into HCFSL

The management team has significant experience in the financial sector and is guided by the HDFC Group’s senior management, who are on the company’s board.

By virtue of being a part of the HDFC Group, the company has access to diverse funding sources at competitive rates.

HCFSL’s net interest margin improved in FY2022 as the decline in the cost of funds was higher than the decline in yields, thereby resulting in an improvement in the operating profitability.

The gearing improved on the back of capital infusions and slower growth in the loan book in FY2021 due to the impact of the pandemic.

8.25%HDFC Credila Financial Services Limited 23 Jul 2032

ISIN:

INE539K08211

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*All Interest Payments will be subject to TDS (Not Applicable on Government Securities and Tax Free Bonds)

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AA Stable

CARE

AA + /Stable

CRISIL

Subordinated Tier 2

Unsecured

ISSUER

HDFC Credila Financial Services Limited

Recent News

HDFC Credila Financial Services Limited

CCI clears proposed acquisition of HDFC Credila Financial Services

ADIA may buy 10% of HDFC Credila from EQT Baring

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