Mumbai, June 7: HDFC Bank today sealed the largest-ever securitisation deal for auto loans, worth Rs 811.13 crore, in an arrangement where pass-through certificates (PTC) for an equivalent amount have been issued.

The move shows the increasing size of its retail loans, which includes advances given to finance vehicles, and its growing urge to securitise these assets.

The issue, which opened on June 4, received excellent response from mutual funds and banks and was lapped up on day one.

The certificates representing the underlying loans have been issued by Retail 2004 Series II, a special purpose trust settled by IL&FS Trust Company.

The Trust raised the funds by issuing three types of certificates, which were rated by Icra on the strength of cash flows from the selected pool of loan contracts.

The bank said the underlying assets are auto and commercial vehicle loan receivables from a pool of 26,359 loan contracts.

The concentration on individual exposures is small and a majority of the pool is in the small and medium cars and heavy commercial vehicles segments.

Standard Chartered Bank was the book-runner and lead arranger for the issue. Securitisation entails conversion of cash flows into marketable securities. It is a process through which illiquid assets are turned into tradable securities and sold to third-party investors. Such instruments are called asset backed securities.