hdfc: HDFC Bank’s second quarter credit growth reflects strong Indian demand

India’s most-valued lender, outpaced the industry by growing its loan portfolio by more than 23% in the three months to September, reflecting undiminished domestic credit demand that does not appear to be impacted by the likelihood of an impending recession in the wealthiest neighborhoods on either side of the Atlantic Waters Margin.

The lender’s total advances now stand at ₹14.80 lakh crore, according to provisional figures. This compares to a total loan portfolio of ₹11.98 lakh crore a year ago. Other lenders have also reported strong demand for funds, lending credence to the assessment that India is poised to outperform its peers during a period seen as rather challenging for large pockets of the economy. world.

“HDFC Bank’s overall loan growth was around 700 basis points, outpacing system loan growth of around 16%, which is very encouraging,” said Suresh Ganapathy, Managing Partner at Macquarie Capital. . “Growth has been driven by retail, commercial and rural banking lending. CRB (Commercial and Rural Bank) lending continues to grow at 30% year-on-year, which is positive for meeting priority sector lending requirements as this segment, while representing approximately 37% of the total loan portfolio, constitutes over 60% of the Priority Sectors loan portfolio, so growing this portfolio faster before the merger with HDFC is critical.”

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

Credit growth continued to hit a new high, up 14.8% year-on-year in August. Services and industrial credit led credit growth, followed by agriculture and retail trade. Personal credit growth remained strong at 19.5%. In the retail sector, a slight increase was observed in durable consumer goods, outstanding credit cards and car loans.

, also released pro forma figures late Monday evening, showing robust credit growth of 18% in the September quarter, mainly driven by the continued acceleration of the retail portfolio, including microfinance, commercial vehicles as well as the business portfolio. Its total loan portfolio is now ₹2.59 lakh crore. The bank recorded a 15% growth in deposits to ₹3.15 lakh crore.

“On its Microfinance (MFI) portfolio, the bank appears well positioned for growth, with MFI as a sector poised to rebound, as asset quality issues lag far behind and demand on the ground shows strong signs of a pick-up,” said analyst Anand Dama. “For IndusInd Bank, entering the more expensive individual MFI loan segment would also drive growth.”

Private lender

posted an 11.6% growth in its loans to ₹1.92 lakh crore. Its total deposits rose by 13.2% to ₹2,000,000, according to provisional figures released for the September quarter.

Non-bank lender Mahindra & Mahindra Financial Services said it disbursed ₹4,080 crore, delivering 110% year-on-year growth. The first half is estimated to disburse around ₹21,300 crore, the company said.