HDFC Bank sees incredible prospect in the educational loan segment and will be concentrating on the segment over the next years. This information was given by Ms Renu Sud Karnad, Managing Director, Housing Development Finance Corporation (HDFC).
The bank will focus on this segment via Credila financial services which deals exclusively in education loans. The bank holds 41% share in this company.
Ms. Karnad said, “Credila is a tiny company today. But in the coming years, we want to push education loans through it. We see a good market for loans for college education. We want to use the HDFC expertise to see quick turnaround times”.
She refuted any intentions of HDFC opting for a stake sale in HDFC Bank in the next fiscal.
HDFC holds a stake of around 23% in HDFC Bank and slightly less than 73% in HDFC Standard Life.
Ms. Karnad said, “As regards HDFC Bank, we would like not to dilute. We would like to stay where we are. That is why when the bank raises equity, we also put in our money”.
However unlike SBI, HDFC has denied having any intentions of offering teaser home loan. The bank had withdrawn its teaser home loanscheme during March 2010.