November 14th, 2009
By Our Correspondent , PTI
Mumbai, Nov. 13: The country's top mortgage lender, HDFC, on Friday announced the acquisition of 41 per cent stake in the education loan provider, HDFC Credila Financial Services - marking its entry into a specialised market estimated at over Rs 30,000 crore.
The HDFC is purchasing the 41 per cent equity from DSP Merrill Lynch Capital Ltd, an Indian subsidiary of the global financial services major, Merrill Lynch.
Commenting on the deal, HDFC's senior general manager (treasury), Mr V. S. Rangan, said that it was "a very small investment? at less than Rs 10 crore for the company, but marked its entry into a fast-growing market. "Education loans provide a large business opportunity in the country with more and more people going for higher studies,? Mr Rangan said.
"The market for student loans is continuously growing... currently, it is estimated at about Rs 30,000 crore and is growing every year at a rate of 25-30 per cent,? Mr Rangan said.
Source: Deccan Chronicle