HDFC and Citi bank drop plans for cross selling home loans

Housing Development Finance Corporation (HDFC) and Citigroup has dropped their plans for cross selling each others mortgage lending loan products, according to media reports.

Recently, HDFC and Citigroup had signed an operating agreement for cross selling of their products. The agreement, it is learnt, came to an end due to conflict of interest between Citibank and HDFC bank, the bank promoted by HDFC.

HDFC Bank has not launched its own home loan products and instead, sells HDFC home loans for a fee. HDFC holds around 23.32 per cent in HDFC Bank. Citigroup recently increased its stake in HDFC to 12.3 per cent and nominated its representative on the HDFC board. Citi bank officially describes its stake in HDFC as a financial investment.