HDFC Bank expects 17-18% credit growth this year
The largest private lender in the country HDFC Bank You expect loan growth of 17-18% during the current financial year because there is sufficient demand for credit.
As of 1 July, parent mortgage company HDFC Ltd has merged with its subsidiary HDFC Bank making it the second largest lender after Central Bank of India.
During the first quarter, total advances to the bank increased by 15.8 per cent to ₹ 16.15 lakh crore.
“Overall, we’re confident there’s enough demand for credit. We’ll have to see which one we want and when we start building,” HDFC Bank’s chief financial officer, Srinivasan Vidyanathan, said on a recent call with analysts.
He said that the bank will be selective in terms of credit and will not participate in certain loans, adding, “If the price does not satisfy us, we do not need it.”
Meanwhile, Vice Chairman of the now merged entity HDFC Ltd Keki Mistry is the most valuable independent director. The market capitalization of the listed companies including HDFC Bank of which he is an independent director has exceeded ₹ 27 thousand crores.
Apart from HDFC Bank, Mistry sits on the boards of directors Tata Advisory Services (TCS), HDFC LifeAnd Torrenting power And flipkartamong others.
He is followed by the former Chair of the SBI, OP Bhatt; Capacity Building Committee Chair, Adil Zain Al-Bahai. And former Central Vigilance Commissioner K. in. Chaudhary.
On the distribution front, while the bank added 39 branches in the quarter, 1,482 branches were added over the past 12 months, Vidyanathan said. The total number of branches now stands at 7,860.
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Regarding cards, he said that the bank issued 1.5 million cards in the first quarter, and the total number of cards is 18.4 million.
“Our website continues to receive massive traffic. We received an average of 109 million visits per month with over 89 million unique visitors over the quarter with an annual growth rate of 42 percent,” he said.
The Reserve Bank of India (RBI) in December 2020 asked HDFC Bank to halt all launches of its upcoming digital business generating business and sourcing new credit card customers after repeated outages in its data center affected operations. It was later lifted in March 2022.