In a significant strategic move, India’s highest-valued bank, HDFC Bank, is preparing to divest several key commercial properties. The sale, which could potentially garner around ₹3,000 crore, comes in the wake of the bank’s 2023 merger with its parent mortgage lender, HDFC.

What Happened: The properties on the block include the HDFC House in South Mumbai’s Churchgate and residential apartments previously assigned to HDFC’s top officials, according to a report by The Economic Times.

The commercial assets, spread across south Mumbai, Kalina, Chandivali, Kolkata, Mysore and Bengaluru, are estimated to be worth around ₹2,400 crore. The residential apartments are likely to fetch around ₹800 crore.

The HDFC House, purchased for ₹300 crore in 2014, formerly served as the headquarters of Hindustan Unilever. However, Ramon House, HDFC’s previous headquarters, will not be included in this monetisation drive.

See Also: Top 4 Leonardo DiCaprio Movies Every Finance Enthusiast Should Watch

The divestment plan underscores the bank’s aim to streamline its real estate assets and strengthen its liquidity position following the merger. This strategic decision represents a major shift in HDFC Bank’s asset portfolio following the merger, as the bank moves away from managing physical assets to focus on its core banking operations, the report added, citing a person in the know.

Industry experts predict that the sale could pique the interest of real estate investment firms, developers, and institutional investors seeking to extend their reach in these prime locations. This move is likely to reinforce the trend of Indian financial institutions shedding non-core assets to enhance their balance sheets.

Price Action: Shares of HDFC Bank opened 1.04% lower at ₹1,747.90 on Tuesday.

Read Next: Hindalco Q2: Net Profit Soars 78% To ₹3,909 Cr, Beats Estimates

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.