HDFC Bank’s loan advances are up nearly Rs 7.09 lakh crore as of June 30 this year compared to Rs 5.8 lakh crore in the corresponding period last year and Rs 6.5 lakh crore as of March 2018, Bank said in the filing. It is more than three times of Rs 2.11 lakh crore what the government last year had announced for bank recapitalisation plan of state-owned lenders weighed down by bad loans. The deposits aggregated nearly Rs 8.6 billion at June end. “The Bank’s deposits aggregated approximately Rs 8.06 lakh crore as of June 30, 2018 as compared to Rs 6.7 lakh crore as of June 30, 2017 and Rs 7.8 lakh crore as of March 31, 2018,” the Bank said. The Bank’s CASA ratio stood at around 41 percent in comparison to 44 percent as of June 30, 2017 and 43.5 percent as of March 31, 2018, the filing said.
During the quarter ended June this year, HDFC Bank purchased loans aggregating Rs 9700 crore with Housing Development Finance Corporation (HDFC) Limited. The loans were purchased through the direct assignment route under the home loan arrangement with HDFC Limited.
Meanwhile, as majority of the banking system players, including its private sector peers fight the scourge of bad loans and frauds, HDFC Bank said it is looking at expanding its market share. “Of course, we will get some benefit if the rest are focused on other issues other than growth. We do expect to grow well,” managing director and chief executive Aditya Puri told reporters last month. The veteran banker further said typically, his bank’s growth plans are not dependent on competition. Puri termed the ongoing troubles in the system as a period of transition, and that there is nothing to worry at the systemic level as most of the lenders are either well-capitalised or have the assurance of government support.
He also supported the changes in the NPA asset recognition norms, saying it coupled with the bankruptcy laws, has changed the way borrowers think. Puri said the bank will be starting a Rs 24,000 crore capital raising process “very soon” and exuded confidence of it sailing through on its key strengths–good capital buffers, and one of the best earnings ratios in the world.