HDFC Bank, the country’s second-largest private bank, has moved to the top of the pile in the retail banking segment, displacing ICICI Bank as the recovery in demand and robust economic growth helped the bank to lend more to customers buying cars, homes and two-wheelers.
The bank has seen a record lending of Rs 4,000 crore for the month of March, which is more than double of what it had disbursed in the month of April 2009. The loan growth is spread across several segments of retail banking such as automobile loans, commercial vehicles, personal and home loans, two-wheeler loans and credit cards.
HDFC Bank’s retail lending in March this year was marked by disbursements of Rs 1,300 crore in auto loans in, Rs 1,200 crore in home loans, Rs 400 crore in the form of commercial vehicle loans and Rs 300 crore of construction equipment loans. Its personal loan book aggregated Rs 600 crore compared with Rs 425 crore in March 2009. The bank markets home loans of its parent HDFC and then buys back portions of such loans. The bank had disbursed retail loans of Rs 3,000 crore in October, Rs 1,800 crore in April 2009 and Rs 2,700 crore in June 2008 before the global financial crisis.
The spike in lending comes at a time when its peers have sought to apply the brakes on lending to the retail segment after taking a hit mainly on unsecured credit in the form of personal loans and credit cards. Bad loans rose last fiscal as the economic slowdown in 2008-09 impacted the ability of customers to repay loans with firms slashing jobs and cutting salaries to combat the downturn then.
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