hdfc: Merger between HDFC Bank and HDFC will drive credit growth in India

The merger with will create a large balance sheet that would be able to support large exposures and lead to higher credit growth for the Indian economy, HDFC Bank Chairman Atanu Chakraborty said on Saturday. He also added that the strong distribution network will help grow the housing finance business.

“A large and more stable balance sheet that the merger would create would also allow us to increase our exposures and facilitate higher credit growth in the economy,” Chakraborty said while addressing shareholders at the annual general meeting. . “We have spoken many times about the rationale and merits of the merger. Housing finance is going to be a huge growth opportunity and one of the main drivers of India’s GDP over the next decade. he advantage of a lower cost of funds and the strong distribution network we have built, among several other factors, there is tremendous merit in seizing this opportunity.”

He also added that the bank has made the necessary inquiries regarding the merger with various authorities and that 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 as India is expected to grow at a healthy pace of 8.7%, HDFC Bank is poised to take advantage of opportunities.

“Given the anticipated recovery in GDP growth, the huge scale of banking opportunities in India, the enormous strength of our franchise and our resilient balance sheet, we believe we are extremely well positioned to capitalize on the immense opportunities ahead of us,” he said. “The bank has put in place the strategy and the roadmap to achieve stable and profitable growth. I feel great confidence in our ability to respond vigorously to the expectations of our customers, stakeholders and employees.”

Despite multiple unforeseen challenges that have strained trade flows and the international financial system, the chairman of HDFC Bank expressed confidence that the government and the RBI will manage to control inflation.

“With the RBI and the government taking steps to tackle inflationary pressures, retail price inflation is also expected to moderate in the coming months, providing further support to consumer demand,” he said. declared. “The medium-term outlook for the economy remains optimistic and macroeconomic fundamentals are still strong, putting India in a better position to weather any major global shocks.”