Hdfc Bank Growth: HDFC Bank’s Q2 credit growth reflects strong Indian demand | Techy Kings


India’s most valuable lender, outperformed the industry by expanding its loan book by more than 23% in the three months to September, reflecting unabated domestic credit demand that appears unfazed by the growing likelihood of an impending recession in wealthier neighborhoods in both sides of the Atlantic Water Margin.

The lender’s total advances now stand at ₹14.80 lakh crore, provisional figures show. This compares with a total loan book of ₹11.98 lakh crore in the year-ago period. Other lenders, too, reported strong demand for funds, lending credence to assessments that India is poised to outperform peers through what is considered a tough period for large pockets of the global economy.

“HDFC Bank’s overall loan growth is around 700bps-plus over system loan growth of around 16%, which is very encouraging,” said Suresh Ganapathy, associate director, Macquarie Capital. “Growth is driven by retail and commercial loans and rural banking. CRB (commercial and rural banking) loans continue to grow at 30% YoY, which is positive to meet priority sector lending needs as this segment, although around 37% of the entire loan book, constitutes more than 60% of the priority sector loan book. Hence, it is very important to grow this book faster before the merger with HDFC.”

The bank also posted a deposit growth of 19%, taking its book total to ₹16.73 lakh crore at the end of the September quarter. This compares to ₹14.06 lakh crore in the previous year.

Credit growth continued to set new highs, rising 14.8% year-on-year in August. Services and industry credit led credit growth, followed by agriculture and retail. Retail credit growth remained strong at 19.5%. In retail, increases were seen in consumer durables, credit card collections and vehicle loans. , also, released proforma numbers late Monday night, showing strong credit growth of 18% in the September quarter, mainly driven by continued acceleration in the retail book including microfinance, commercial vehicles as well as the corporate book. Its total loan book is now at ₹2.59 lakh crore. The bank reported 15% growth in deposits to ₹3.15 lakh crore.

“On the microfinance (MFI) book, the bank appears poised for growth, with MFIs as a sector on the cusp of a growth recovery, as asset quality issues largely lag behind and demand on the ground shows strong signs of uptake,” said Anand Dama, analyst ,

. “For IndusInd Bank, entry into the higher-ticket MFI individual loan segment will also boost growth.”

Private lenders

posted 11.6% growth in its loans to ₹1.92 lakh crore. Its total deposits rose 13.2% to ₹2 lakh crore, provisional figures released for the September quarter showed.

Non-bank lender Mahindra & Mahindra Financial Services said it disbursed ₹4,080 crore giving 110% year-on-year growth. The first half is estimated to record a disbursement of about ₹21,300 crore, the company said.


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