HDFC Bank expects 17-18% credit growth this year
As of the information you provided, India’s biggest private sector lender, HDFC Bank, expects a loan growth of 17-18 percent during the current financial year. This growth is anticipated due to the existing credit demand in the market.
The merger of the parent mortgage firm, HDFC Ltd, with its subsidiary HDFC Bank has further solidified the bank’s position, making it the second biggest lender in India after State Bank of India.
During the first quarter, the bank’s total advances saw a rise of 15.8 percent, reaching Rs 16.15 lakh crore. This indicates that the bank has experienced substantial growth in its loan portfolio during that period.
According to HDFC Bank’s Chief Financial Officer (CFO), Srinivasan Vaidyanathan, the bank is confident that there is sufficient credit demand in the market. However, the bank plans to be selective in its approach to lending and will carefully choose which types of loans to participate in.
The CFO mentioned that the bank will not participate in certain loans if the terms and conditions, including the interest rate or pricing, are not favorable to them. This indicates that HDFC Bank will prioritize profitable lending opportunities and exercise caution in taking on credit that may not meet their risk-return criteria.
Being selective in lending practices is a common approach for banks to manage risks and maintain a healthy loan portfolio. By choosing loans judiciously and avoiding those that do not meet their standards, HDFC Bank aims to safeguard its financial stability and profitability in the long run.
As of the information provided, Keki Mistry, the Vice Chairman of HDFC Ltd (which has now merged with HDFC Bank), holds the distinction of being the most valued independent director. The combined market capitalization of the listed companies on which he serves as an independent director exceeds Rs 27 lakh crore.
In addition to HDFC Bank, Mistry also serves on the boards of other prominent companies, including Tata Consultancy Services (TCS), HDF Life, Torrent Power, and Flipkart, among others. This suggests that he is involved in a diverse range of organizations, which further adds to his reputation as a valued independent director.
The other individuals mentioned in the context of being prominent independent directors are as follows:
1. O P Bhatt – Former Chairman of State Bank of India (SBI)
2. Adil Zainulbhai – Chairman of Capacity Building Commission
3. K V Chowdary – Former Central Vigilance Commissioner
These individuals also hold significant positions as independent directors in various companies.
It’s important to note that the mentioned data is based on the information available up to the time of the statement. Market capitalizations and directorships may change over time due to fluctuations in stock prices, company performance, and changes in board compositions. For the most up-to-date and accurate information, one should refer to the latest financial reports and news sources.
Keki Mistry, the Vice Chairman of HDFC Ltd (now merged with HDFC Bank), is recognized as the most esteemed independent director. The total market capitalization of the companies where he serves as an independent director surpasses Rs 27 lakh crore.
Besides HDFC Bank, Mistry also holds directorship positions in other prominent organizations, including Tata Consultancy Services (TCS), HDF Life, Torrent Power, and Flipkart, among others. This diverse involvement reinforces his reputation as a highly regarded independent director.
Other notable individuals mentioned in the context of esteemed independent directors are O P Bhatt, former Chairman of State Bank of India (SBI); Adil Zainulbhai, Chairman of Capacity Building Commission; and K V Chowdary, former Central Vigilance Commissioner. They also hold significant roles as independent directors in various companies.
In December 2020, the Reserve Bank of India (RBI) directed HDFC Bank to suspend all launches of its upcoming digital business-generating activities and halt the sourcing of new credit card customers. This action was taken due to the bank experiencing repeated outages at its data center, which significantly affected its operations and services.
However, the restriction was later lifted by the RBI in March 2022, allowing HDFC Bank to resume its digital business initiatives and acquire new credit card customers once the bank addressed and resolved the issues that led to the outages.
