Biggest Indian Bank’s Unit Plans $2 Billion Private Credit Fund

  • Fund to primarily focus on lending to residential projects
  • Property sector set for highest deal flow in India, EY says

A HDFC Bank Ltd. branch in Mumbai. 

Photographer: Dhiraj Singh/Bloomberg
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An arm of India’s biggest lender HDFC Bank Ltd. is seeking to raise as much as $2 billion for a real estate private credit fund as demand for new homes surges in the world’s most populous country.

HDFC Capital Advisors Ltd. is looking to raise $1 billion, with an option to expand the fund by an additional $1 billion, according to people familiar with the matter. The investor base will consist largely of international institutional investors, the people said, asking not to be identified discussing private information.