Despite a 17% fall in 2024 YTD, Morgan Stanley sees a 49% upside in HDFC Bank; here's why
Arvind Kapil, Country Head - Mortgage Banking, Home Loan, LAP, HDFC Bank. Morgan Stanley in its report stated that the accelerated market share gains would improve CASA cross-selling in upcoming quarters. "The company gave details on the home loan business after the merger.
The turnaround time has improved amid higher market share gains," the brokerage firm noted. "Management announced its plans to launch a couple of products in the near term. This includes a) a straight-through journey for home refurbishment loans by mid-March 2024 (a relaunch of a similar product offered by HDFC Ltd pre-merger) and b) the Home Saver product (an offering for existing and prospective home buyers) by April 2024.
In a media interview, a senior bank official noted that the Home Saver product is like an overdraft facility and will directly compete with SBI’s Maxgain home loan scheme," informed the brokerage. It also pointed out that Cross-selling from HDFC Ltd’s service centres has already commenced from February 1, 2024. Home loan customers will be able to avail of products and services like consumer durable loans, credit cards, wealth advisory products, unsecured loans, and home refurbishment loans.
The strength of its team along with digital journeys will enable cross-selling with no incremental costs. On the operational front, the bank plans to convert all erstwhile HDFC Ltd service centres to bank branches in a phased manner and its entire mortgage team will become relationship managers, further said the brokerage. Moreover, the bank noted that turnaround time has decreased to almost one-third post-merger.
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