• Wed. Feb 28th, 2024

HDFC Bank expects loan growth of 17-18 percent this year

HDFC Bank expects loan growth of 17-18 percent this year

HDFC Bank, the country’s largest private sector lender, expects loan growth of 17-18 per cent this fiscal due to adequate credit demand.

HDFC Bank (PTI)

Effective July 1, parent mortgage firm HDFC Ltd merged with its subsidiary HDFC Bank to become the second largest lender after State Bank of India.

The bank’s total advances rose 15.8 percent in the first quarter 16.15 lakh crore.

“Overall, we are confident that there is enough credit demand. It is for us to look at what we need and at what point we start building,” HDFC Bank Chief Financial Officer (CFO) Srinivasan Vaidyanathan said in a recent call with analysts.

The bank will be selective when it comes to credit and won’t participate in certain loans, he said, “if the price is not to our liking, we don’t want it.”

Meanwhile, Kekki Mistry, vice-chairman of the now-merged entity HDFC Ltd, has emerged as the most valued independent director. The market capitalization of listed companies including HDFC Bank, of which he is an independent director, has ended 27 lakh crore.

Apart from HDFC Bank, Mistry is also on the boards of Tata Consultancy Services (TCS), HDF Life, Torrent Power and Flipkart.

He was followed by former SBI chairman OP Bhatt; Chairman, Capacity Building Commission, Adil Zainulbhai; Former Central Vigilance Commissioner KV Chaudhary.

While the bank added 39 branches this quarter, Vaidyanathan said 1,482 branches were added in the last 12 months. Now the total number of branches is 7,860.

In terms of cards, he said the bank issued 1.5 million cards in the first quarter, taking the total number of cards to 18.4 million.

“Our website receives huge traffic. We averaged 109 million visits per month, with over 89 million unique visitors in the quarter, a growth of 42 percent,” he said.

In December 2020, the RBI had asked HDFC Bank to stop all launches of its upcoming digital business generation activities and sourcing of new credit card customers, after repeated outages at its data center affected operations. It was later lifted in March 2022.

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