Shares of Indiabulls Housing Finance jumped 12.4 per cent after the company announced a strategic co-lending partnership with HDFC Ltd offering housing loans at competitive rates. The Indiabulls Housing Finance stock traded at Rs 177.85 apiece, up 7.7 per cent from its previous close, while the benchmark index Sensex was up a marginal at 47781.32. Shares of HDFC were up nearly 1 per cent at Rs 2,438.50 on the BSE.

Indiabulls Housing Finance will originate retail home loans as the per jointly drawn up credit policy and retain 20 per cent of the loan on its books, with the rest 80 per cent with HDFC. Indiabulls Housing Finance will service the loan account through the life cycle of the loan.

A Co-lending partnership with HDFC will act as a cornerstone to the company’s new balance-sheet light growth business model. Moreover, technology-led co-lending will help the company offer a convenient and seamless experience to its customers as well as help expand its reach to tier 3 and 4 towns, Indiabulls Housing said.

HDFC is the market leader of the domestic housing finance industry, with assets under management worth Rs 5.5 trillion as of the end of December 2020.