“A larger and more stable balance sheet that the merger will create will allow us to increase our exposure and facilitate higher credit growth in the economy,” Chakraborty said while addressing shareholders at the annual general meeting. “We have talked about the rationale and merits of the merger on several occasions. Housing finance is going to be a huge growth opportunity and one of the major drivers of India’s GDP over the next decade. The benefits of low cost of funds With and among many other factors, the strong distribution network we have built has great potential to take advantage of this opportunity.”
He also said that the bank has made necessary applications related to the merger to various authorities and the board is closely monitoring the merger process for approval of various aspects of the merger as required by the legal process.
Chakraborty also said that since India is projected to grow at a healthy pace of 8.7%, HDFC Bank is ready to capitalize on the opportunities.
“Given the anticipated resurgence of GDP growth, the sheer scale of banking opportunities in India, the enormous strength of our franchise and our flexible balance sheet, we believe that we are well positioned to take advantage of the immense opportunities that lie ahead of us. Well prepared,” he said. “The Bank has devised a strategy and road map to achieve growth with sustainability and profitability. I feel a great sense of confidence in our ability to deliver robustly on the expectations of our customers, stakeholders and employees.”
Despite several unforeseen challenges that have put enormous pressure on trade flows and the international financial system, the HDFC Bank chairman said he is confident that the government and reserve Bank of India Will be successful in controlling inflation.
“With measures taken by both RBI and the government to tackle inflationary pressures, retail inflation is also likely to moderate in the coming months, providing further support to consumer demand,” he said. “The medium-term outlook of the economy remains optimistic and macro-economic fundamentals are still strong, putting India in a better position to weather any major global shocks.”