HDFC Bank has refuted claims of intending to sell its builder loans, valued at approximately ₹1 lakh crore. This statement comes in response to a report by The Morning Context, which cited anonymous sources.

What Happened: The bank released a statement late on Sunday, denying the allegations made in the article published two days earlier. HDFC Bank clarified its intention to maintain a robust presence in builder financing, a sector where it commands a sizeable market share.

The bank’s strategy, as per the statement, is to grow its overall advances at a slightly slower pace than deposits during the period it reduces costlier borrowings following the merger with HDFC Limited. The bank categorically stated that there is no plan to target the sale of any specific portfolio. The bank has requested the publication to retract the article and issue a corrigendum.

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“Generally, the Bank does not respond to these types of frivolous and inappropriate reports. However, in the instant case, we are responding to put the matter to rest as the portfolio referred to above is of important growth segment for the Bank and for the development of the country by enabling broad-based home ownership to the people of India,” the lender added in the statement.

The lender posted its earnings for the quarter ended June earlier this month, HDFC Bank’s net profit grew by 35.3% year-on-year to ₹16,174.75 crore. The bank’s net interest income rose by 26.4% from the previous year to ₹29,837 crore.

However, the bank’s net interest margin (NIM) fell to 3.47% from 4.1% in the previous year due to higher funding costs. Its gross non-performing assets rose to 1.33% from 1.17% in the previous year, and net non-performing assets (NNPA) also rose slightly to 0.39% from 0.30% in the previous year.

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