strong credit enhancement The second quarter shows the economy is improving and consumers are not holding back amid high inflation and rising interest rates.
private sector lender HDFC bankThe U.S. loan book showed a significant growth of 23% in the July-September quarter, which is 700 basis points or 7% higher than the systemic growth.
“HDFC Bank’s overall credit growth was over 700 bps, exceeding the system credit growth of around 16%, which is very encouraging,” said Suresh Ganapathy, associate director. Macquarie Capital,
This growth has been led by retail, commercial and rural banking loans. Its total advances now stand at Rs 14.80 lakh crore as against a total loan book of Rs 11.98 lakh crore in the corresponding period last year, the provisional numbers show.
Commercial and rural banking credit grew by 31.5 per cent over the previous year, while household retail loans and corporate and wholesale credit saw a growth of over 20 per cent over the previous year.
Brokerage firm Prabhudas Lilladher said credit growth and NIM There may be a boom in private banks. “The NIM expansion for private banks may be 11 bps higher as compared to 5 bps for PSU banks as the ratio of repo-linked loans to private banks is higher,” said a report.
“HDFC Bank may see sustained growth in PAT while NIM expansion may be lower than peers,” the report said.
Narendra SolankiHead of Equity Research Anand RathiSaid that the current environment looks positive for private banks as higher low cost deposits help in sustaining better NIMs.
The private lender has revamped its digital journey after facing the wrath of the regulator over repeated glitches.
Bank launched smarthub business Merchant App which is going to meet the needs of the merchant community.
Parag Rao, Group Head, Payments Business, Digital and IT, HDFC Bank said, “We have designed the new SmartHub Vyapar App to meet every merchant requirement and bring efficiencies to their banking and business ecosystem.” “Our aim is to solve the problems and difficulties faced by merchants in their day to day business, help them to grow their business, deepen our reach and connect with business centers across India. This App Payment , brings a vibrant suite of lending and payments. business Solutions on the same platform.”
The merger with the mortgage lender is another positive that will help HDFC Bank expand its balance sheet with long-term mortgage loans.
Rao said the merger would give the lender a good set of customers and it is an opportunity on multiple fronts.
“We will find a good group of customers who have housing loans for more than 10 years, they are well underwritten so it is an opportunity on many fronts. It is an opportunity for more assets, it is liability accounts. There’s an opportunity for it, it’s also a paid opportunity because all of them.”
Gaurav Jani of Prabhudas Lilladher observed that the bank is performing well in the near term and that India’s banking sector will not be affected by the slowdown in advanced economies.
“The growth story of Indian banks continues despite the winds of slowdown blowing across the developed economies,” he said.