State Bank of India (SBI) is set to acquire National Housing Bank’s (NHB’s) 10% stake in RMBS Development Company (RDCL), a middle-layer non-banking financial company (NBFC) focused on residential mortgage-backed securitisation. Following the transaction, NHB’s holding in RDCL will decline to 29% from 39%.
“The induction of SBI as a shareholder will strengthen RDCL, which is being developed as a specialised market intermediary for mortgage-backed securitisation in India,” said a person familiar with the development.
RDCL was set up in 2024 with a paid-up capital of ₹500 crore to help deepen India’s residential mortgage-backed securities (RMBS) market. Its shareholders include leading banks, housing finance companies, NBFCs and Life Insurance Corporation of India (LIC).
LIC holds a 10 % stake in RDCL, while HDFC Bank, ICICI Bank and Bajaj Finance own 7 % each. Aditya Birla Housing Finance, Tata Capital Housing Finance, Truhome Finance (formerly Shriram Housing Finance), Grihum Housing Finance, Hero Housing Finance and IIFL Home Finance each hold 5 %.
Freeing Up Locked Capital
Banks and non-bank lenders are keen to develop an active securitisation market that allows them to pool long-term, illiquid home loans and convert them into tradable securities. At a time when deposit growth continues to lag credit expansion, securitisation can help lenders free up capital, improve liquidity and create capacity for fresh lending.
Lenders are increasingly looking to monetise their home loan portfolios so that capital locked in long-term assets can be redeployed more productively. According to CRIF High Mark, the outstanding retail home loan portfolio stood at ₹44.4 lakh crore as of March 2026.
SBI has the country’s largest home loan book at ₹9.44 lakh crore as of March 31, 2026. Among private sector lenders, HDFC Bank’s mortgage portfolio stood at ₹8.89 lakh crore, while ICICI Bank’s was ₹4.98 lakh crore.
Institutional Participation
RDCL is expected to facilitate participation by long-term institutional investors such as insurance companies and pension funds in the residential mortgage market. By acting as a commercially sustainable market intermediary, it aims to develop a deep and liquid secondary mortgage market while enabling lenders to securitise their housing loan portfolios.
Last week, RDCL completed a ₹180-crore securitisation transaction involving a pool of home loans originated by Punjab Housing Finance. Edelweiss Life Insurance acted as the anchor investor, subscribing to ₹54 crore of the securitised pool, while PNB MetLife Insurance and Zuno General Insurance were the other investors.
RDCL executed its maiden transaction on May 5, 2025, by securitising a ₹1,109-crore pool of home loans originated by LIC Housing Finance. LIC subscribed to ₹900 crore as the anchor investor, NHB invested ₹100 crore, while LIC Housing Finance retained ₹109 crore of the securitised pool.