New Delhi: State Bank of India (SBI) is set to acquire the National Housing Bank’s (NHB) 10 per cent stake in RMBS Development Company Ltd (RDCL), a middle-layer non-banking financial company (NBFC) established to develop India’s residential mortgage-backed securitisation market.
Following the transaction, NHB’s shareholding in RDCL will reduce from 39 per cent to 29 per cent, while SBI will become one of the company’s key shareholders.
SBI’s entry expected to strengthen RDCL
According to sources familiar with the development, SBI’s induction as a shareholder is expected to strengthen RDCL’s role as a specialised market intermediary for residential mortgage-backed securitisation (RMBS) in India.
RDCL was incorporated in 2024 with a paid-up capital of Rs 500 crore to deepen the country’s residential mortgage-backed securities market.
The company brings together banks, housing finance companies, NBFCs and insurance institutions to promote securitisation of housing loans.
Diverse shareholder base
Apart from NHB, RDCL’s shareholders include several leading financial institutions.
Life Insurance Corporation of India (LIC) currently holds a 10 per cent stake, while HDFC Bank, ICICI Bank and Bajaj Finance each own 7 per cent.
Other shareholders with 5 per cent stakes include Aditya Birla Housing Finance, Tata Capital Housing Finance, Truhome Finance, Grihum Housing Finance, Hero Housing Finance and IIFL Home Finance.
Securitisation to improve liquidity
Banks and non-bank lenders are increasingly looking at securitisation as a way to unlock capital tied up in long-term housing loans.
By pooling home loans and converting them into tradable securities, lenders can free up capital, improve liquidity and create additional capacity for fresh lending.
The strategy has gained importance at a time when deposit growth continues to lag credit expansion, increasing the need for alternative funding avenues.
According to CRIF High Mark, India’s outstanding retail home loan portfolio stood at approximately Rs 44.4 lakh crore as of March 2026.
SBI remains largest home loan lender
SBI continues to hold the country’s largest home loan portfolio, with outstanding housing loans of Rs 9.44 lakh crore as of March 31, 2026.
Among private sector banks, HDFC Bank had a mortgage portfolio of Rs 8.89 lakh crore, while ICICI Bank reported a home loan book of Rs 4.98 lakh crore.
The growing size of these portfolios has increased the importance of developing an active secondary mortgage market.
RDCL promotes institutional investment
RDCL aims to encourage participation by long-term institutional investors such as insurance companies and pension funds in India’s residential mortgage market.
By functioning as a commercially sustainable intermediary, the company seeks to create a deeper and more liquid secondary market for mortgage-backed securities while enabling lenders to securitise their housing loan portfolios more efficiently.
Recent securitisation transactions
RDCL has already completed several securitisation transactions since commencing operations.
Last week, the company completed a Rs 180-crore securitisation transaction involving home loans originated by Punjab Housing Finance.
Edelweiss Life Insurance acted as the anchor investor with an investment of Rs 54 crore, while PNB MetLife Insurance and Zuno General Insurance also participated.
Earlier, on May 5, 2025, RDCL executed its maiden transaction by securitising a Rs 1,109-crore home loan pool originated by LIC Housing Finance.
In that transaction, LIC invested Rs 900 crore as the anchor investor, NHB subscribed Rs 100 crore, and LIC Housing Finance retained Rs 109 crore of the securitised pool.
Conclusion
SBI’s proposed acquisition of NHB’s 10 per cent stake is expected to further strengthen RDCL’s efforts to develop India’s residential mortgage-backed securities market. As lenders increasingly seek to unlock capital through securitisation, RDCL is poised to play a key role in expanding the country’s secondary mortgage market and attracting long-term institutional investment.