Is there anyone here who works at a bank as Loan officer?
What do Banks do in India with the loans they give especially the Home loans, do they keep the debt on their books and make money from interest ? or do they sell them as securities to investment banks ?
I have heard that private banks like HDFC and even SBI loans end up in some Collateralized debt obligation, they sell home loan as securities to JP morgan, Barclays, Citi group etc… but there is no exact figure of how many Indian loans are making it into Debt based securities out there.
So I wanted to know if Indian banks only sell their debt to investment banks as a hedge or do they sell every loan on their books and recover the capital immediately.
