PremiumMUMBAI: Shares of Indiabulls Housing Finance jumped 12.4% after the company announced a strategic co-lending partnership with HDFC Ltd offering housing loans at competitive rates.
At 1220 pm, the Indiabulls Housing Finance stock traded at ₹177.85 apiece, up 7.7% from its previous close, while the benchmark index Sensex was up a marginal at 47781.32. Shares of HDFC were up nearly 1% at Rs2,438.50 on the BSE.
Premium Indiabulls Housing Finance will originate retail home loans as the per jointly drawn up credit policy and retain 20% of the loan on its books, with the rest 80% with HDFC. Indiabulls Housing Finance will service the loan account through the life cycle of the loan.
Co-lending partnership with HDFC will act as a cornerstone to the company's new balance-sheet light growth business model. Moreover, technology led co-lending will help the company offer convenient and seamless experience to its customers as well as help expand its reach to tier 3 and 4 towns, Indiabulls Housing said.
HDFC is the market leader of the domestic housing finance industry, with assets under management worth Rs5.5 trillion as of end of December 2020.
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