 |
|
|
|
 |
13 November 2009 |
|
|
|
HDFC picks up 41% in Credila Financial
HDFC picks up 41% in Credila Financial
HDFC Buys out DSP Merrill Lynch stake; entering student loan business.
New thrust area
Credila Financial specialises in student loans, especially for those going abroad
The investment is less than Rs 10 crore, says HDFC General Manager
Our Bureau
Mumbai, Nov. 13
Housing finance major HDFC is entering the education loan business, which the company sees as a high growth segment.
HDFC on Friday announced acquisition from DSP Merrill Lynch Capital of a 41 per cent equity stake in a finance service company Credila Financial Services that specialises in education loans.
Though the acquisition is modest in terms of value terms, the move assumes significance as the housing finance company is entering into a new line of business. The investment is less than Rs 10 crore, said Mr V. S. Rangan, Senior General Manager, HDFC.
Mumbai-based Credila Financial specialises in student loans, especially for students going abroad. The NBFC (non-banking financial company) has a loan portfolio of around Rs 20 crore, built over the last two years.
Mr Rangan told Business Line that the student loan segment is growing at an annualised rate of about 25-30 per cent, which makes this investment an attractive one for HDFC. The company had earlier given some small student loans, but did not focus on this segment. As of now HDFC has no plans to lend directly. Instead it will focus on growing the business of Credila Financial and even infuse fresh capital if required, Mr Rangan said.
“We have to grow this business. So we will infuse capital as required. As of now not much capital is required,” he said. DSP Merrill Lynch has sold its entire stake of 41 per cent.
The remaining 59 per cent is held by the promoters Bohora Brothers.
Banks active in the education loans have seen good credit growth as this segment has not been hit much by the downturn. In the September ended quarter, most banks reported over 25 per cent growth in student loan protfolio.
According to Ms Rupa Rege Nitsure, Chief Economist, Bank of Baroda, education loans are not linked to the immediate income of the borrower but are linked to the future earnings.
Therefore, the immediate economic scenario has no impact on this segment.
Bank of Baroda saw its education loan portfolio grow by 29 per cent in the September ended quarter. For Bank of India the growth was 24 per cent and for Union Bank of India the growth was 40 per cent.
Category : Education Loan | Source : Business Standard | 29 Day(s) Ago
http://www.blonnet.com/2009/11/14/stories/2009111451860100.htm |
|
| |
 |
14 November 2009 |
|
|
|
HDFC enters education loan with Credila buy
HDFC enters education loan with Credila buy
14 Nov, 2009, 0141 hrs IST, ET Bureau
MUMBAI: India’s largest mortgage company is diversifying into education loans. Housing Development and Finance Corporation (HDFC) has acquired a 41% stake in Credila Financial Services, a company that specialises in education loans, for Rs 10 crore. The transaction values the company at Rs 23 crore.
HDFC has acquired the stake from Merrill Lynch, which was an initial investor in the company, promoted by Anil Bohora and Ajay Bohora in 2006. Credila commenced business as an NBFC from 2007 with its registered office in Mumbai. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.
“Education is growing expensive and the demand for education loans is growing,” said VS Rangan, senior GM — treasury, HDFC.
In recent years, large Indian business groups have forayed into education, a sector that many feel has a huge potential. A few private equity investors are also betting on education by buying into little-known unlisted entities that they think could join the valuation play in future.
Since HDFC is registered as a housing finance company, it can engage only in mortgage finance. There is small amount of general financing done by the company through its ‘top-up’ loans to home loan customers. Besides, there is no specialised lending toward education.
Mr Rangan said HDFC would have some involvement in the company and in the distribution of education loans. “We will use our existing distribution network for the loans,” he added.
Unlike bank education loans, Credila’s loans are all secured. The company insists on one or more creditworthy co-borrowers for all disbursals. It has also entered into agreement with a students tracking agency abroad.
Last year, rating agency Care issued a ‘triple B minus’ rating to Credila. The rating drew comfort from Credila’s management team and technology-driven systems and its success in attracting investment from a large investment bank “However, the rating is constrained due to Credila being a start-up NBFC and has no track record in the line of business. Moreover, its untested underwriting and recovery procedures, exposure to single asset class and ability to sustain stiff competition from banks offering education loans at lower interest rates would be major rating sensitivities,” the agency had said.
Before founding Credila, the Bohoras founded a healthcare claims processing company called ClaimsBPO in January 1997 with a US joint venture partner. In 2003, ClaimsBPO was sold to WNS Global Services, a Warburg Pincus-owned company, listed on NYSE. The promoters are both engineers who have relocated from executive positions in the US. Ajay was earlier with MetLife in its New York office, while Anil had worked in senior positions in AOL Time Warner and Pitney Bowles.
http://m.economictimes.com/PDAET/articleshow_v8/5228443.cms
|
|
| |
|
| |
|
| |
 |
13 November 2009 |
|
|
|
HDFC to buy 41% stake in Credila Financial
HDFC to buy 41% stake in Credila Financial
Press Trust of India / Mumbai November 13, 2009, 18:29 IST
Housing Development Finance Corporation (HDFC), the country’s largest mortgage lender, today said it would acquire about 41 per cent stake in the education loan provider - Credila Financial Services held by DSP Merrill Lynch Capital.
“The corporation has agreed to acquire about 41 per cent in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital,” HDFC said in a filing to the Bombay Stock Exchange (BSE).
The acquisition of stake is subject to compliance with applicable regulations, it added.
The company, however, did not disclose further details in this regard.
DSP Merrill Lynch Capital is a minority investor in Credila Financial Services.
Shares of HDFC closed at Rs 2,758.45, up 0.54 per cent from its previous close on the BSE.
http://www.business-standard.com/india/news/hdfc-to-buy-41-stake-in-credila-financial/78289/on |
|
| |
|
| |
|
| |
 |
14 November 2009 |
|
|
|
HDFC to buy 41% in education loan provider
HDFC to buy 41% in education loan provider
TNN 14 November 2009, 12:16am IST
NEW DELHI: The country's largest home loan player HDFC Ltd will acquire 41% stake in education loan provider company Credila Financial Services.
With this, HDFC will enter a specialised education loan market, estimated at over Rs 30,000 crore.
HDFC is purchasing the 41% stake in Credila from DSP Merrill Lynch Capital Ltd, an Indian subsidiary of global financial services major Merrill Lynch. Commenting on the deal, HDFC's senior general manager (treasury) V S Rangan said that though it was a very small investment at less than Rs 10 crore, it will mark HDFC's entry into fast-growing education loan market, which is expanding at around 30% per annum.
"Education loan provides a large business opportunity in the country with more and more people going for higher studies," Rangan said. As it has become a very specialized market, HDFC decided to enter this segment through buying stake in a company, which has proper domain knowledge.
Credila Financial Services has disbursed loan of around Rs 16 crore in 2009-09. "Currently, the market is mostly dominated by banks, but the requirement for education loans is growing day-by-day. The company would disburse loan for studies in India as also overseas," Rangan said.
At present, HDFC Ltd offers very specialized education loan to students in select institutions like Indian School of Business (ISB), Hyderabad, Indian School of Management (IIM) Ahmedabad and Symbiosis, Pune
http://timesofindia.indiatimes.com/biz/india-business/HDFC-to-buy-41-in-education-loan-provider/articleshow/5228154.cms
|
|
| |
 |
16 November 2009 |
|
|
|
Small-ticket acquisition lifts HDFC
Small-ticket acquisition lifts HDFC
Small-ticket acquisition lifts HDFC
Monday, November 16, 2009 (New Delhi)
Housing Development Finance Corporation rose 0.89% to Rs 2783 at 9:56 IST on BSE, after the company agreed to acquire 41% stake in Mumbai-based Credila Financial Services from DSP Merrill Lynch Capital.
The company made this announcement after market hours on Friday, 13 November 2009.
Meanwhile, the BSE Sensex was up 162.63 points, or 0.97%, to 17,011.46.
On BSE, 569 shares were traded in the counter as against an average daily volume of 94,289 shares in the past one quarter.
The stock hit a high of Rs 2798.70 and a low of Rs 2770 so far during the day. The stock had hit a 52-week high of Rs 2875 on 15 October 2009 and a 52-week low of Rs 1116.10 on 6 March 2009.
The large-cap stock had outperformed the market over the past one month till 13 November 2009, rising 0.01% as compared to the Sensex's 1.04% fall. It had also outperformed the market in the past one quarter, gaining 16.76% as compared to the Sensex's return of 8.57%.
The company's equity capital is Rs 285.35 crore. Face value per share is Rs 10.
The current price of Rs 2783 discounts the company's Q2 September 2009 annualized EPS of Rs 93.22, by a PE multiple of 29.85.
Credila Financial Services specializes in student loans, especially for students going abroad. The non-banking financial company (NBFC) has a loan portfolio of around Rs 20 crore.
Housing Development Finance Corporation (HDFC)'s net profit rose 24.3% to Rs 663.94 crore on 8.8% increase in total income to Rs 2850.23 crore in Q2 September 2009 over Q2 September 2008.
Increase in loan disbursements, reduction in cost of funds, and lower non-performing loans helped HDFC post better profits.
HDFC provides long-term housing loans to low and middle-income individuals, as well as to corporations. HDFC also provides construction finance to real estate developers, besides providing lease-financing facilities to companies and development authorities for infrastructure and other assets.
http://profit.ndtv.com/2009/11/16120916/Smallticket-acquisition-lifts.html
|
|
| |
 |
12 December 2009 |
|
|
|
HFDC to acquire 41 pc stake in Credila
HFDC to acquire 41 pc stake in Credila
Mumbai: The country's leading mortgage lender Housing Development Finance Corporation (HDFC) is branching out to the education loan segment. HDFC has proposed to acquire about 41 per cent stake in the education loan provider Credila Financial Services held by DSP Merrill Lynch Capital. “The corporation has agreed to acquire approximately 41 per cent in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital Ltd,” HDFC said. The acquisition of stake is subject to compliance with applicable regulations, it added. The company, however, did not disclose further details in this regard. DSP Merrill Lynch Capital Ltd is a minority investor in Credila Financial Services. HDFC shares closed at Rs 2,758.45, up 0.54 per cent from its previous close on the BSE.
http://www.indianexpress.com/news/landt-sells-2.32-in-satyam-for-rs-306-cr/541261/
|
|
| |
 |
12 December 2009 |
|
|
|
HDFC picks up 41% in DSP Merrill Lynch unit
HDFC picks up 41% in DSP Merrill Lynch unit
HDFC has announced that it would acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services Pvt Ltd, a lender specialised in giving education loans from DSP Merrill Lynch Capital Ltd. VS Rangan, senior general manager, treasury, HDFC, said: “We have decided to buy a 41% stake in Credila by paying around Rs 10 crore. This deal is expected to be sealed within two months time. If need arises, we may buy Credila by acquiring a major stake in future as education loan business is an attractive business that is currently growing at around 30% in our country.” This is the first investment of HDFC in an education-loan providing company. Currently, HDFC has an educational loan portfolio of Rs 10-15 crore.
http://www.financialexpress.com/news/Corporate-notes/541204/
|
|
|
| |
|
| |
| |
 |
13 November 2009 |
|
|
|
HDFC announces a 41% stake in Credila
HDFC announces a 41% stake in Credila
Published on Sat, Nov 14, 2009 at 11:23 | Updated at Sat, Nov 14, 2009 at 11:26 | Source : Business Line
Housing finance major HDFC is entering the education loan business, which the company sees as a high growth segment.
HDFC on Friday announced acquisition from DSP Merrill Lynch Capital of a 41% equity stake in a finance service company Credila Financial Services that specialises in education loans.
Though the acquisition is modest in terms of value terms, the move assumes significance as the housing finance company is entering into a new line of business. The investment is less than Rs 10 crore, said VS Rangan, Senior General Manager, HDFC.
Mumbai-based Credila Financial specialises in student loans, especially for students going abroad. The NBFC (non-banking financial company) has a loan portfolio of around Rs 20 crore, built over the last two years.
Rangan told Business Line that the student loan segment is growing at an annualised rate of about 25-30%, which makes this investment an attractive one for HDFC. The company had earlier given some small student loans, but did not focus on this segment. As of now HDFC has no plans to lend directly. Instead it will focus on growing the business of Credila Financial and even infuse fresh capital if required, Rangan said.
“We have to grow this business. So we will infuse capital as required. As of now not much capital is required,” he said. DSP Merrill Lynch has sold its entire stake of 41%.
The remaining 59% is held by the promoters Bohora Brothers.
Banks active in the education loans have seen good credit growth as this segment has not been hit much by the downturn. In the September ended quarter, most banks reported over 25% growth in student loan protfolio.
According to Rupa Rege Nitsure, Chief Economist, Bank of Baroda, education loans are not linked to the immediate income of the borrower but are linked to the future earnings.
Therefore, the immediate economic scenario has no impact on this segment.
Bank of Baroda saw its education loan portfolio grow by 29% in the September ended quarter. For Bank of India the growth was 24% and for Union Bank of India the growth was 40%.
Taken from Business Line http://www.deccanherald.com/content/35681/hdfc-buys-41-stake-credila.html
|
|
| |
|
| |
 |
13 November 2009 |
|
|
|
HDFC forays into education loan biz
HDFC forays into education loan biz
Fri, Nov 13, 2009 at 20:27 IST
HDFC forays into education loan biz
Mumbai: Country's top mortgage lender HDFC today announced acquisition of 41% stake in education loan provider Credila Financial Services -- marking its entry into a specialised market estimated at over Rs 30,000 crore.
HDFC is purchasing the 41 % equity from DSP Merrill Lynch Capital , an Indian subsidiary of global financial services major Merrill Lynch.
Commenting on the deal, V S Rangan, HDFC's Senior General Manager (Treasury) told PTI 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," 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 % ," Rangan said.
Currently, the market is mostly dominated by the banks, but the requirement for student loans is growing day-by-day, he added.
Rangan said the company would disburse loan for studies in India as also overseas.
The deal is subject to compliance with applicable regulations, HDFC said.
http://www.bloombergutv.com/industry-news/banking-industry-news/37434/hdfc-forays-into-education-loan-biz.html
|
|
| |
 |
14 November 2009 |
|
|
|
HDFC forays into education loan biz; acquires 41% in Credila
HDFC forays into education loan biz; acquires 41% in Credila
13th-Nov-09 19:12
Country's top mortgage lender HDFC today announced acquisition of 41 per cent stake in education loan provider Credila Financial Services -- marking its entry into a specialised market estimated at over Rs 30,000 crore.
HDFC is purchasing the 41 per cent equity from DSP Merrill
Lynch Capital Ltd, an Indian subsidiary of global financial
services major Merrill Lynch.
Commenting on the deal, HDFC's Senior General Manager
(Treasury) V S Rangan told PTI 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," 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," Rangan said.
Currently, the market is mostly dominated by the banks,
but the requirement for student loans is growing day-by-day,
he added.
Rangan said the company would disburse loan for studies in
India as also overseas.
The deal is subject to compliance with applicable
regulations, HDFC said.
http://www.moneycontrol.com/news/ibu_index.php?storyid=716
|
|
| |
 |
14 November 2009 |
|
|
|
HDFC buys Credila stake for education loans foray news
HDFC buys Credila stake for education loans foray news
Housing finance major HDFC is entering the education loan business, which the company sees as a high growth segment. To this end, it has acquired a 41-per cent equity stake in a finance service company Credila Financial Services from DSP Merrill Lynch Capital. Credila specialises in education loans.
Though the acquisition is modest in value terms, the move assumes significance as the housing finance company is entering into a new line of business. The investment is less than Rs10 crore, said V S Rangan, senior general manager, HDFC, in Mumbai on Friday.
Mumbai-based Credila Financial specialises in student loans, especially for students going abroad. The NBFC (non-banking financial company) has a loan portfolio of around Rs20 crore, built over the last two years.
Rangan said the student loan segment is growing at an annualised rate of about 25-30 per cent, which makes this investment an attractive one for HDFC. The company had earlier given some small student loans, but did not focus on this segment.
As of now HDFC has no plans to lend directly. Instead it will focus on growing the business of Credila Financial and even infuse fresh capital if required. ''We have to grow this business. So we will infuse capital as required. As of now not much capital is required,'' Rangan said.
DSP Merrill Lynch has sold its entire stake of 41 per cent. The remaining 59 per cent is held by the promoters Bohora Brothers. Anil Bohora and Ajay Bohora launched Cadila in 2006 along with Merrill Lynch. Credila commenced business as an NBFC from 2007 with its registered office in Mumbai. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.
Banks active in the education loans have seen good credit growth as this segment has not been hit much by the downturn. In the September ended quarter, most banks reported over 25 per cent growth in student loan portfolio.
According to Rupa Rege Nitsure, chief economist, Bank of Baroda, education loans are not linked to the immediate income of the borrower but are linked to the future earnings. Therefore, the immediate economic scenario has no impact on this segment.
Bank of Baroda saw its education loan portfolio grow by 29 per cent in the September ended quarter. For Bank of India the growth was 24 per cent and for Union Bank of India the growth was 40 per cent, reports Moneycontrol.
In recent years, large Indian business groups have forayed into education, a sector that many feel has a huge potential. A few private equity investors are also betting on education by buying into little-known unlisted entities that they think could join the valuation play in future.
Since HDFC is registered as a housing finance company, it can engage only in mortgage finance. There is small amount of general financing done by the company through its 'top-up' loans to home loan customers. Besides, there is no specialised lending toward education.
Rangan said HDFC would have some involvement in the company and in the distribution of education loans. ''We will use our existing distribution network for the loans,'' he added.
Unlike bank education loans, Credila's loans are all secured. The company insists on one or more creditworthy co-borrowers for all disbursals. It has also entered into agreement with a student tracking agency abroad.
http://www.domain-b.com/finance/institutions/HDFC/20091114_credila_stake.html |
|
| |
|
|
|
HDFC to buy 41% stake in Credila Financial
HDFC to buy 41% stake in Credila Financial
Housing Development Finance Corporation (HDFC), the country’s largest mortgage lender, today said it would acquire about 41 per cent stake in the education loan provider - Credila Financial Services held by DSP Merrill Lynch Capital.“The corporation has agreed to acquire about 41 per cent in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital,” HDFC said...
Category : Education Loan | Source : Business Standard | 29 Day(s) Ago
http://www.24dunia.com/english-news/search/services-shares.html
|
|
| |
| |
|
|
HDFC to buy 41% stake in Credila Financial
HDFC to buy 41% stake in Credila Financial
The corporation has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital Ltd, HDFC said
Mumbai: The country’s largest mortgage lender Housing Development Finance Corporation (HDFC) on Friday said it would acquire about 41% stake in the education loan provider - Credila Financial Services held by DSP Merrill Lynch Capital.
“The corporation has agreed to acquire approximately 41 per cent in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital Ltd,” HDFC said in a filing to the Bombay Stock Exchange (BSE).
The acquisition of stake is subject to compliance with applicable regulations, it added.
The company, however, did not disclose further details in this regard.
DSP Merrill Lynch Capital Ltd is a minority investor in Credila Financial Services.
Shares of HDFC closed at Rs2,758.45, up 0.54% from its previous close on the BSE.
http://www.livemint.com/2009/11/13184352/HDFC-to-buy-41-stake-in-Credi.html
|
|
| |
 |
18 November 2009 |
|
|
|
HDFC announces a 41% stake in Credila
HDFC announces a 41% stake in Credila
By Neelima Shankar
Nov 18, 2009
HDFC announces a 41% stake in Credila
Housing development and Finance Corporation, better known as HDFC has entered into the education loan segment by announcing its plan to purchase a 41 percent stake in education loan provider Credila Financial Services.
HDFC is buying this stake from DSP Merill Lynch Capital Ltd, the Indian arm of global financial services firm Merill Lynch.
Since HDFC is registered as a housing finance company, it deals mostly in housing finance. HDFC provides a small amount of general financinf in the form of top-up loans to its customers. Besides, there is no specialised lending toward education.
V S Rangan, Senior General Manager, HDFC said that the investment was small, less than Rs. 10 crore and it would help the company to enter the fast growing market..
Rangan added, "Education loans provide a large business opportunity in the country with more and more people going for higher studies."
Further, the Senior Manager pointed out that the education loan market was growing continuously at the rate of 25-30 percent every year and was estimated over Rs. 30,000 crore.
He revealed that the company would disburse loans for studies both in India and Overseas. The deal has to adhere to certain norms.
Lately, large Indian businesses have entered into education sector since they eye a huge potential in the sector. Private equity investors have also invested in certain entities in the sector hoping that it would be a good bet.
http://www.rupeetimes.com/news/education_loans/hdfc_announces_a_41_stake_in_credila_3003.html
|
|
| |
 |
16 November 2009 |
|
|
|
HDFC announces a 41% stake in Credila
HDFC announces a 41% stake in Credila
Submitted by Anuj Gupta on Sat, 11/14/2009 - 19:21
HDFC, India’s major mortgage lender will soon purchase approximately 41% stake in the Credila Financial Services. The corporation has decided to buy stake in the privately owned company from DSP Merrill Lynch Capital Ltd.
In a proclamation, the financial major said that the acquirement of the equity stake is subject to compliance with appropriate norms.
DSP Merrill Lynch Capital Ltd holds a minority equity stake in Credila Financial Services, which is an education loan provider.
Stock of Housing Development Finance Corporation Ltd settled the day on Friday (13 Nov) at Rs 2,758.45, up 0.54 per cent on Bombay Stock Exchange (BSE). http://www.stockwatch.in/hdfc-plans-purchase-41-stake-credila-financial-24085
|
|
| |
|
 |
16 November 2009 |
|
|
|
HDFC announces a 41% stake in Credila
HDFC forays into education loan biz; acquires 41% in Credila
HDFC has acquired 41% in education loan provider - Credila Financial Services from DSP Merrill Lynch for $2.2 Mn. The transaction values the Mumbai based company at $ 5 Mn.
Promoters - Anil Bohora and Ajay Bohora hold the remaining 59% in the company.
The deal marks HDFC's entry into Rs 30,000 Cr education loan market, which is expanding at 30% per annum. At present, HDFC Ltd offers very specialized education loan to students in select institutions like ISB, Hyderabad, IIM Ahmedabad and Symbiosis, Pune.
Formed in 2007, Credila has disbursed loan of Rs 16 cr in 2008-09. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.
Unlike bank education loans, Credila’s loans are all secured. The company insists on one or more creditworthy co-borrowers for all disbursals. It has also entered into agreement with a students tracking agency abroad.
Before founding Credila, the Bohoras founded a healthcare claims processing company called ClaimsBPO in January 1997 with a US joint venture partner. In 2003, ClaimsBPO was sold to WNS Global Services, a Warburg Pincus-owned company, listed on NYSE.
The promoters are both engineers who have relocated from executive positions in the US. Ajay was earlier with MetLife in its New York office, while Anil had worked in senior positions in AOL Time Warner and Pitney Bowles.
The Education loan space have seen good credit growth in the recent past. Most of the players have reported over 25% growth in the student loan portfolio.
Union Bank of India reported 40% growth for the quarter, while Bank of India and Bank of Baroda reported 24% and 29% growth respectively in their education loan porfolio.
Here's My Analysis
1. Provides HDFC with an excellent platform for expanding into education loans.
2. Enters a high growth market: HDFC needs to create more growth engines to keep its growth momentum
3. Buy vs build approach gives them quicket acess to market. Credila's conservative approach (all loans are secured) to lending, gels well with that of HDFC's
4. Backing a winning team with their skin still in the game.
End Game
Behoras are serial entrepreneurs and would probably be bought out by HDFC over the next couple of years. HDFCs huge reach and brand would give them the leverage to expand, create value and exit.
http://equity.blogspot.com/2009/11/hdfc-credila-deal-analysis.html
|
|
| |
 |
14 November 2009 |
|
|
|
HDFC picks up 41% in Credila Financial
HDFC picks up 41% in Credila Financial
Published on Sat, Nov 14, 2009 at 11:23 | Updated at Sat, Nov 14, 2009 at 11:26 | Source : Business Line
Housing finance major HDFC is entering the education loan business, which the company sees as a high growth segment.
HDFC on Friday announced acquisition from DSP Merrill Lynch Capital of a 41% equity stake in a finance service company Credila Financial Services that specialises in education loans.
Though the acquisition is modest in terms of value terms, the move assumes significance as the housing finance company is entering into a new line of business. The investment is less than Rs 10 crore, said VS Rangan, Senior General Manager, HDFC.
Mumbai-based Credila Financial specialises in student loans, especially for students going abroad. The NBFC (non-banking financial company) has a loan portfolio of around Rs 20 crore, built over the last two years.
Rangan told Business Line that the student loan segment is growing at an annualised rate of about 25-30%, which makes this investment an attractive one for HDFC. The company had earlier given some small student loans, but did not focus on this segment. As of now HDFC has no plans to lend directly. Instead it will focus on growing the business of Credila Financial and even infuse fresh capital if required, Rangan said.
“We have to grow this business. So we will infuse capital as required. As of now not much capital is required,” he said. DSP Merrill Lynch has sold its entire stake of 41%.
The remaining 59% is held by the promoters Bohora Brothers.
Banks active in the education loans have seen good credit growth as this segment has not been hit much by the downturn. In the September ended quarter, most banks reported over 25% growth in student loan protfolio.
According to Rupa Rege Nitsure, Chief Economist, Bank of Baroda, education loans are not linked to the immediate income of the borrower but are linked to the future earnings.
Therefore, the immediate economic scenario has no impact on this segment.
Bank of Baroda saw its education loan portfolio grow by 29% in the September ended quarter. For Bank of India the growth was 24% and for Union Bank of India the growth was 40%.
Taken from Business Line
http://www.moneycontrol.com/news/business/hdfc-picks41credila-financial_424926.html
|
|
| |
|
| |
|
| |
|
|
|
HDFC To Buy 41% In Credila Financial Services
HDFC to buy stake in Credila Financial
Posted by diwakar.k 29 days ago
Housing Development Finance Corp (HDFC) said on Friday it had agreed to buy about 41% education loan provider Credila Financial Services from DSP Merrill Lynch Capital.
|
|
| |
 |
12 December 2009 |
|
|
|
HDFC picks up 41% in Credila Financial
HDFC picks up 41% in Credila Financial
Published on Sat, Nov 14, 2009 at 11:23 | Updated at Sat, Nov 14, 2009 at 11:26 | Source : Business Line
Housing finance major HDFC is entering the education loan business, which the company sees as a high growth segment.
HDFC on Friday announced acquisition from DSP Merrill Lynch Capital of a 41% equity stake in a finance service company Credila Financial Services that specialises in education loans.
Though the acquisition is modest in terms of value terms, the move assumes significance as the housing finance company is entering into a new line of business. The investment is less than Rs 10 crore, said VS Rangan, Senior General Manager, HDFC.
Mumbai-based Credila Financial specialises in student loans, especially for students going abroad. The NBFC (non-banking financial company) has a loan portfolio of around Rs 20 crore, built over the last two years.
Rangan told Business Line that the student loan segment is growing at an annualised rate of about 25-30%, which makes this investment an attractive one for HDFC. The company had earlier given some small student loans, but did not focus on this segment. As of now HDFC has no plans to lend directly. Instead it will focus on growing the business of Credila Financial and even infuse fresh capital if required, Rangan said.
“We have to grow this business. So we will infuse capital as required. As of now not much capital is required,” he said. DSP Merrill Lynch has sold its entire stake of 41%.
The remaining 59% is held by the promoters Bohora Brothers.
Banks active in the education loans have seen good credit growth as this segment has not been hit much by the downturn. In the September ended quarter, most banks reported over 25% growth in student loan protfolio.
According to Rupa Rege Nitsure, Chief Economist, Bank of Baroda, education loans are not linked to the immediate income of the borrower but are linked to the future earnings.
Therefore, the immediate economic scenario has no impact on this segment.
Bank of Baroda saw its education loan portfolio grow by 29% in the September ended quarter. For Bank of India the growth was 24% and for Union Bank of India the growth was 40%.
Taken from Business Line
http://www.in.com/news/business/hdfc-picks-up-41-in-credila-financial-11652189-59907707f917b2491a81f8e89787dbc5faf73849-1.html
|
|
| |
 |
13 December 2009 |
|
|
|
HDFC picks up 41% in Credila Financial
HDFC picks up 41% in Credila Financial
November 13 2009, 17:12:23 IST | TEAM VCC
HDFC To Buy 41% In Credila Financial Services
Credila Financial Services Pvt. Ltd is a lender of education loans.
Housing Development Finance Corporation Ltd (HDFC) has said it will acquire approximately 41% in Credila Financial Services Pvt. Ltd, a lender of education loans, from DSP Merrill Lynch Capital Ltd.
The deal is subject to compliance with applicable regulations, HDFC said, in its filing to the BSE. The value of the transaction was not disclosed.
http://www.vccircle.com/500/news/hdfc-to-buy-41-in-credila-financial-services
|
|
| |
 |
12 December 2009 |
|
|
|
India : HDFC enters education loan with Credila buy.
India : HDFC enters education loan with Credila buy.
India s largest mortgage company is diversifying into education loans. Housing Development and Finance Corporation (HDFC HDFC Housing Development Finance Corporation (India)
HDFC Housing Development Fund Corporations (New York City limited-equity, low income, housing cooperatives)
HDFC Huntington's Disease Family Center ) has acquired a 41% stake in Credila Financial Services, a company that specialises in education loans, for Rs 10 croren. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>.
Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million
..... Click the link for more information.. The transaction values the company at Rs 23 crore.
HDFC has acquired the stake from Merrill Lynch, which was an initial investor in the company, promoted by Anil Bohora and Ajay Bohora in 2006. Credila commenced business as an NBFCNBFC Non Banking Financial Company
NBFC New Beginning Fellowship Church (Oklahoma City, OK)
NBFC North Bavarian Fighting Corps (gaming clan)
NBFC Noyal-Brécé Football Club (Brittany, France)
..... Click the link for more information. from 2007 with its registered office in Mumbai. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.
Education is growing expensive and the demand for education loans is growing, said VS Rangan, senior GM treasury, HDFC.
In recent years, large Indian business groups have forayed into education, a sector that many feel has a huge potential. A few private equity investors are also betting on education by buying into little-known unlisted entities that they think could join the valuation play in future.
Since HDFC is registered as a housing finance company, it can engage only in mortgage finance. There is small amount of general financing done by the company through its top-up loans to home loan customers. Besides, there is no specialised lending toward education.
Mr Rangan said HDFC would have some involvement in the company and in the distribution of education loans. We will use our existing distribution network for the loans, he added.
Unlike bank education loans, Credila s loans are all secured. The company insists on one or more creditworthy co-borrowers for all disbursals. It has also entered into agreement with a students tracking agency abroad.
Last year, rating agency Care issued a triple B minus rating to Credila. The rating drew comfort from Credila s management team and technology-driven systems and its success in attracting investment from a large investment bank However, the rating is constrained due to Credila being a start-up NBFC and has no track record in the line of business. Moreover, its untested underwriting and recovery procedures, exposure to single asset class and ability to sustain stiff competition from banks offering education loans at lower interest rates would be major rating sensitivities, the agency had said.
Before founding Credila, the Bohoras founded a healthcare claims processing company called ClaimsBPO in January 1997 with a US joint venture partner. In 2003, ClaimsBPO was sold to WNS WNS Washington (DC) Numismatic Society
WNS WADP Numbering System (World Association for the Development of Philately)
WNS Wireless Network Security
WNS Weismann-Netter Syndrome
WNS Western Snow Conference Global Services, a Warburg Pincus-owned company, listed on NYSENYSE
See: New York Stock Exchange
..... Click the link for more information.
http://www.thefreelibrary.com/India+:+HDFC+enters+education+loan+with+Credila+buy.-a0212167061
|
|
| |
|
| |
|
| |
|
| |
|
|
|
HDFC buys 41% stake in Credila Deccan Herald 2009-11-13
HDFC enters education loan with Credila buy
India’s largest mortgage company is diversifying into education loans. Housing Development and Finance Corporation (HDFC) has acquired a 41% stake in Credila Financial Services, a company that specialises in education loans, for Rs 10 crore. The transaction values the company at Rs 23 crore.
HDFC has acquired the stake from Merrill Lynch, which was an initial investor in the company, promoted by Anil Bohora and Ajay Bohora in 2006. Credila commenced business as an NBFC from 2007 with its registered office in Mumbai. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.
“Education is growing expensive and the demand for education loans is growing,” said VS Rangan, senior GM — treasury, HDFC.
In recent years, large Indian business groups have forayed into education, a sector that many feel has a huge potential. A few private equity investors are also betting on education by buying into little-known unlisted entities that they think could join the valuation play in future.
Since HDFC is registered as a housing finance company, it can engage only in mortgage finance. There is small amount of general financing done by the company through its ‘top-up’ loans to home loan customers. Besides, there is no specialised lending toward education.
Mr Rangan said HDFC would have some involvement in the company and in the distribution of education loans. “We will use our existing distribution network for the loans,” he added.
Unlike bank education loans, Credila’s loans are all secured. The company insists on one or more creditworthy co-borrowers for all disbursals. It has also entered into agreement with a students tracking agency abroad.
Last year, rating agency Care issued a ‘triple B minus’ rating to Credila. The rating drew comfort from Credila’s management team and technology-driven systems and its success in attracting investment from a large investment bank “However, the rating is constrained due to Credila being a start-up NBFC and has no track record in the line of business. Moreover, its untested underwriting and recovery procedures, exposure to single asset class and ability to sustain stiff competition from banks offering education loans at lower interest rates would be major rating sensitivities,” the agency had said.
Before founding Credila, the Bohoras founded a healthcare claims processing company called ClaimsBPO in January 1997 with a US joint venture partner. In 2003, ClaimsBPO was sold to WNS Global Services, a Warburg Pincus-owned company, listed on NYSE. The promoters are both engineers who have relocated from executive positions in the US. Ajay was earlier with MetLife in its New York office, while Anil had worked in senior positions in AOL Time Warner and Pitney Bowles.
http://eduworldinfo.wordpress.com/2009/11/14/hdfc-enters-education-loan-with-credila-buy/
|
|
| |
|
| |
|
|
|
HDFC forays into education loan biz; acquires 41% in Credilaz
HDFC forays into education loan biz; acquires 41% in Credilaz
Mumbai: Country's top mortgage lender HDFC on Friday announced acquisition of 41 per cent stake in education loan provider Credila Financial Services -- marking its entry into a specialised market estimated at over Rs 30,000 crore.
HDFC is purchasing the 41 per cent equity from DSP Merrill Lynch Capital Ltd, an Indian subsidiary of global financial services major Merrill Lynch.
Commenting on the deal, HDFC's Senior General Manager (Treasury) V S Rangan told PTI 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," 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," Rangan said.
Currently, the market is mostly dominated by the banks, but the requirement for student loans is growing day-by-day, he added.
Rangan said the company would disburse loan for studies in India as also overseas.
The deal is subject to compliance with applicable regulations, HDFC said.
Bureau Report
http://www.zeenews.com/news578772.html
|
|
| |
 |
14 November 2009 |
|
|
|
IndiaNewsBox Buzz – What's India Talking About
Submitted by Anuj Gupta on Sat, 11/14/2009 - 19:21
HDFC, India’s major mortgage lender will soon purchase approximately 41% stake in the Credila Financial Services. The corporation has decided to buy stake in the privately owned company from DSP Merrill Lynch Capital Ltd.
In a proclamation, the financial major said that the acquirement of the equity stake is subject to compliance with appropriate norms.
DSP Merrill Lynch Capital Ltd holds a minority equity stake in Credila Financial Services, which is an education loan provider.
Stock of Housing Development Finance Corporation Ltd settled the day on Friday (13 Nov) at Rs 2,758.45, up 0.54 per cent on Bombay Stock Exchange (BSE).
http://indianewsbox.in/buzz/?p=14155
|
|
| |
|
| |
 |
13 November 2009 |
|
|
|
HDFC signs agreement to acquire stake in Credila Ltd
Source: Equity Bulls
Posted On: 11/13/2009 9:13:38 AM
HDFC signs agreement to acquire stake in Credila Ltd
Housing Development Finance Corporation Ltd (HDFC) has announced that on November 13, 2009, the Corporation has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services Pvt. Ltd. from DSP Merrill Lynch Capital Ltd., subject to compliance with applicable regulations.
The HDFC stock closed the day at Rs.2758.45, up by Rs.14.85 or 0.54%. The stock hit an intraday high of Rs.2781 and low of Rs.2735.
The total traded quantity was 83371 compared to 2 week average of 76854.
http://www.buzzingstock.net/live-calls/hdfc-to-acquire-nearly-41-stake-in-credila/
|
|
| |
|
| |
 |
13 November 2009 |
|
|
|
HDFC To Buy 41% In Credila Financial Services
HDFC to acquire nearly 41% stake in Credila
13 Nov 2009. Source: VC-CIRCLE.
Housing Development Finance Corporation Ltd (HDFC) has said it will acquire approximately 41% in Credila Financial Services Pvt. Ltd, a lender of education loans, from DSP Merrill Lynch Capital Ltd. The deal is subject to compliance with applicable regulations, HDFC said, in its filing to the BSE. The value of the transaction was not disclosed.
http://www.altassets.com/private-equity-blogs/viewrss/21073.html
|
|
| |
|
|
|
HDFC to buy stake in Credila Financial
HDFC to buy stake in Credila Financial
posted at Indiatimes 28 days ago (economictimes.indiatimes.com)
MUMBAI: India's top mortgage lender, Housing Development Finance Corp, said on Friday it had agreed to buy about 41 per cent in education loan provider Credila Financial Services from DSP Merrill Lynch Capital. HDFC agreed to buy about 41 per cent in education loan provider Credila Financial Services from DSP Merrill Lynch Capital.
http://www.humsurfer.com/hdfc-to-buy-stake-in-credila-financial
|
|
| |
 |
13 November 2009 |
|
|
|
HDFC to acquire stake in Credila
HDFC to acquire stake in Credila al
Capital Market / 05:27 PM , Nov 13, 2009
Subject to compliance with applicable regulations
Housing Development Finance Corporation (HDFC) has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital on 13 November 2009, subject to compliance with applicable regulations.
http://www.indiainfoline.com/Markets/News/News.aspx?NewsId=354500
|
|
| |
|
| |
 |
13 November 2009 |
|
|
|
HDFC announces a 41% stake in Credila
HDFC announces a 41% stake in Credila
18.11.2009 20:21
Housing development and Finance Corporation, better known as HDFC has entered into the education loan segment by announcing its plan to purchase a 41 percent stake in education loan provider Credila Financial Services.
HDFC is buying this stake from DSP Merill Lynch Capital Ltd, the Indian arm of global financial services firm Merill Lynch.
Since HDFC is registered as a housing finance company, it deals mostly in housing finance. HDFC provides a small amount of general financinf in the form of top-up loans to its customers. Besides, there is no specialised lending toward education.
V S Rangan, Senior General Manager, HDFC said that the investment was small, less than Rs. 10 crore and it would help the company to enter the fast growing market..
Rangan added, "Education loans provide a large business opportunity in the country with more and more people going for higher studies."
Further, the Senior Manager pointed out that the education loan market was growing continuously at the rate of 25-30 percent every year and was estimated over Rs. 30,000 crore.
He revealed that the company would disburse loans for studies both in India and Overseas. The deal has to adhere to certain norms.
Lately, large Indian businesses have entered into education sector since they eye a huge potential in the sector. Private equity investors have also invested in certain entities in the sector hoping that it would be a good bet.
http://redtram.com/go/230776980/
|
|
| |
 |
14 November 2009 |
|
|
|
HDFC acquires stake in Credila
HDFC acquires stake in Credila
HDFC acquires stake in Credila
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, 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.
http://www.deccanchronicle.com/business/hdfc-acquires-stake-credila-958
|
|
| |
 |
13 November 2009 |
|
|
|
HDFC acquires stake in Credila
HDFC acquires stake in Credila
HDFC - Agreement to acquire stake in Credila Ltd.
November 13, 2009
Housing Development Finance Corporation Ltd (HDFC) has informed BSE that on November 13, 2009, the Corporation has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services Pvt. Ltd. from DSP Merrill Lynch Capital Ltd., subject to compliance withapplicable regulations.
http://money.rediff.com/companies/news/546868
|
|
| |
| |
 |
13 November 2009 |
|
|
|
HDFC to buy stake in Credila Financial
HDFC to buy stake in Credila Financial
by on November 13, 2009
We are pleased to present headlines from around the globe…
Headline: HDFC to buy stake in Credila Financial
MUMBAI (Reuters) – Housing Development Finance Corp said on Friday it had agreed to buy about 41 percent in education loan provider Credila Financial Services from DSP Merrill Lynch Capital.
Read more:
HDFC to buy stake in Credila Financial
HDFC to buy stake in Credila Financial complete article can by clicking the link above or by going to http://in.biz.yahoo.com/091113/137/baukli.html. The headlines are provided as a service to readers. All rights reserved by source.
http://institutionalpartners.com/2009/11/hdfc-to-buy-stake-in-credila-financial/
|
|
| |
|
| |
 |
13 November 2009 |
|
|
|
HDFC To Buy 41% In Credila Financial Services
HDFC To Buy 41% In Credila Financial Services
Posted on November 13, 2009
Housing Development Finance Corporation Ltd (HDFC) has said it will acquire approximately 41% in Credila Financial Services Pvt. Ltd, a lender of education loans, from DSP Merrill Lynch Capital Ltd.The deal is subject to compliance with applicable regulations, HDFC said, in its filing to the BSE. The value of the transaction was not disclosed....
http://www.greenedia.com/sectors/directory/vc-circle/180797
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
 |
13 November 2009 |
|
|
|
HDFC to acquire nearly 41% stake in Credila
HDFC to acquire nearly 41% stake in Credila
Source: IRIS (13-NOV-09)
Housing Development Finance Corporation (HDFC) today announced that it has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services (P) from DSP Merrill Lynch Capital.
The aforesiad acquisition is subject to compliance with applicable regulations.
Shares of HDFC gained (Q,N,C,F)* Rs 14.85, or 0.54%, to settle at Rs 2,758.45. The total volume of shares traded was 83,371 at the BSE (Friday).
http://www.xe.com/news/2009-11-13%2007:27:00.0/799805.htm?c=1&t=107
|
|
| |
 |
13 November 2009 |
|
|
|
HFDC agrees to acquire 41 pc stake in Credila Fin Ser
November 13,2009
Mumbai
The country's largest mortgage lender Housing Development Finance Corporation (HDFC) today said it would acquire about 41 per cent stake in the education loan provider - Credila Financial Services held by DSP Merrill Lynch Capital.
"The corporation has agreed to acquire approximately 41 per cent in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital Ltd," HDFC said in a filing to the Bombay Stock Exchange (BSE).The acquisition of stake is subject to compliance with applicable regulations, it added.
The company, however, did not disclose further details in this regard.DSP Merrill Lynch Capital Ltd is a minority investor in Credila Financial Services.
http://www.indiareport.com/India-usa-uk-news/latest-news/700749/Madhya0/4/29/4
|
|
| |
 |
13 November 2009 |
|
|
|
HDFC to pick-up 41% stake in Credila Financial Services
HDFC to pick-up 41% stake in Credila Financial Services
The countryâ??s largest mortgage lender, Housing Development Finance Corporation (HDFC) has decided to pick-up about 41% in the fully diluted equity share capital of Credila Financial Services.
The corporation will acquire this stake from DSP Merrill Lynch Capital.
Further, the acquisition is subject to compliance with applicable regulations.
HDFC had posted a 24.28% rise in its second quarter net profit which stood at Rs 663.94 crore as against Rs 534.23 crore for the September 2008 quarter.
http://www.cafestocks.com/newsDetails.do?newsId=9000062317
|
|
| |
|
| |
 |
27 November 2009 |
|
|
|
HDFC selling unsecured loans aggressively
HDFC selling unsecured loans aggressively
By siliconindia news bureau
Friday,27 November 2009, 12:23 hrs
Mumbai: In contrast to other banks that are scared to sell unsecured loans such as credit cards and personal loans, HDFC is selling aggressively, reports Rupee Times.
During the last financial year, most of the banks have seen rising defaults in their personal loans and have therefore stopped selling unsecured loans aggressively, but HDFC, which has witnessed an increase of 8-10 percent in the second quarter of the current fiscal, expects a faster growth in the latter half of the year.
Parlay Mondal, Country Head, Retail Assets, HDFC bank says, "If there is opportunity in the market, why not take it. I think we are that aggressive. On policy terms, we had actually tightened the policy during the bad economic cycle and we have started loosening it a bit right now. This strategy seems to have worked well for HDFC Bank. Over the last year, it has seen very few defaults in the personal loans segment and its non performing assets (NPAs) from personal loans has grown at a constant 2-3 percent, while those from credit cards at 10-11 percent, both less than half the industry average."
Unsecured loans constitute a meagre 20 percent of HDFC Bank's total assets. Growth in these loans would aid HDFC to gain higher returns and improve margins. However, the bank says that most of the credit growth this financial year would continue to depend on the secure loan business like auto loans and home loans.
HDFC sees a 22-25 percent growth in loan disbursals. It has also entered into the education loan system by announcing a 41 percent stake in Credila, a financial services firm.
http://www.siliconindia.com/shownews/HDFC_selling_unsecured_loans_aggressively-nid-63314-cid-5.html
|
|
| |
|
| |
 |
14 November 2009 |
|
|
|
HDFC Forays Into Education Loan With Credila Buy
HDFC Forays Into Education Loan With Credila Buy
Saturday, 14 November 2009 13:29 Irfan BFSI
HDFC has acquired 41% in education loan provider - Credila Financial Services from DSP Merrill Lynch for $2.2 Mn. The transaction values the Mumbai based company at $5 Mn.
Promoters - Anil Bohora and Ajay Bohora hold the remaining 59% in the company.
The deal marks HDFC's entry into Rs 30,000 Cr education loan market, which is expanding at 30% per annum. At present, HDFC Ltd offers very specialized education loan to students in select institutions like ISB, Hyderabad, IIM Ahmedabad and Symbiosis, Pune.
Formed in 2007, Credila has disbursed loan of Rs 16 cr in 2008-09. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.
Unlike bank education loans, Credila’s loans are all secured. The company insists on one or more creditworthy co-borrowers for all disbursals. It has also entered into agreement with a students tracking agency abroad.
Before founding Credila, the Bohoras founded a healthcare claims processing company called ClaimsBPO in January 1997 with a US joint venture partner. In 2003, ClaimsBPO was sold to WNS Global Services, a Warburg Pincus-owned company, listed on NYSE.
The promoters are both engineers who have relocated from executive positions in the US. Ajay was earlier with MetLife in its New York office, while Anil had worked in senior positions in AOL Time Warner and Pitney Bowles.
The Education loan space have seen good credit growth in the recent past. Most of the players have reported over 25% growth in the student loan portfolio.
Union Bank of India reported 40% growth for the quarter, while Bank of India and Bank of Baroda reported 24% and 29% growth respectively in their education loan porfolio.
http://dealcurry.com/NEW/index.php/Mergers-Acquisitions/Banking/Financial-Services/hdfc-forays-into-education-loan-with-credila-buy.html
|
|
| |
 |
13 November 2009 |
|
|
|
HDFC to buy 41% stake in Credila Financial
HDFC to buy 41% stake in Credila Financial
13 Nov 2009, 1800 hrs IST, REUTERS
MUMBAI: India's top mortgage lender, Housing Development Finance Corp, said on Friday it had agreed to buy about 41 per cent in education loan
provider Credila Financial Services from DSP Merrill Lynch Capital.
Financial details were not disclosed
http://economictimes.indiatimes.com/Markets/Stocks/Stocks-in-News/HDFC-to-buy-stake-in-Credila-Financial/articleshow/5227148.cms
|
|
| |
|
| |
| back to top |
| |
| |
|
|
