HDFC Bank, India’s largest private sector bank, has provided an update on its Home Loan Business, showcasing robust growth following the merger of HDFC Ltd with itself.
The Home Loan business has demonstrated stable and healthy double-digit year-on-year growth for two consecutive quarters, ending December 31, 2023. This growth trajectory has been propelled by the bank’s expanded distribution network.
As of December 2023, the Home Loan business recorded a notable 3.6% sequential growth, marking the highest among its peers in the home loans segment. The bank has experienced a significant reduction in turnaround time, now processing applications in one-third of the time post-merger.
Notably, the bank has shifted its focus towards savings accounts for incremental disbursals, with the figure rising to 80% from 35%. This strategic move strengthens the bank’s digital connectivity with its growing customer base.
Post-merger, HDFC Bank has seen its market share grow by approximately 18% to 20% on incremental disbursals. The bank has consistently achieved higher double-digit year-on-year growth in its Home Loan Business, positioning itself as a leader in the segment.
The bank’s strategy revolves around enhancing the turnaround time and focusing on the self-employed segment to increase the opportunity size. Initiatives such as banking surrogates and GST programs have been launched to cater to this segment effectively.
Looking ahead, HDFC Bank plans to introduce a seamless straight-through journey for Home Refurbishment Loans by mid-March and a home Saver product by April 2024. These offerings aim to provide a lucrative proposition for both existing and prospective home buyers.
Mr. Arvind Kapil, Country Head – Mortgage Banking, Home Loan, LAP, HDFC Bank, emphasized the bank’s commitment to maintaining traditional underwriting standards while driving growth. The Home Loan Business is poised to become a significant driver of customer engagement and loyalty.
The bank is focused on converting all erstwhile HDFC Ltd.’s service centers to branches and transforming its entire mortgage team into relationship managers. Cross-selling initiatives have already commenced, offering a wide range of products and services to home loan customers.
India’s structural demand for housing remains strong, driven by a conducive environment and demographic trends. HDFC Bank is well-positioned to capitalize on this opportunity and contribute to fulfilling the housing dreams of millions across the country. With urbanization expected to rise, the bank stands ready to support the evolving needs of its customers in the housing sector.
