Financial services firm Religare Enterprises on Thursday said it will acquire a part of Citigroup India's home loan portfolio for Rs 500 crore, representing 5 per cent of the latter's total mortgage book.
Citigroup clarified that the company was very much in the home loan business and has just sold a small portion of its loan-book so that it can lend afresh. The acquisition would be done through the non-banking finance arm Religare Finvest and is expected to be completed by October.
"We have entered into an agreement to acquire part assets of Citigroup India's mortgage portfolio for Rs 500 crore. The deal would be completed in the next three months," said Kavi Arora, chief executive, Religare Finvest.
"This sale is of a small pool of mortgages. Citibank routinely sells small tranches of its portfolio to optimise returns on capital and such assets sold are substitued by fresh loan," said Abhijit Sen, chief financial officer, Citi South Asia.