HDFC Bank announces healthy double-digit growth in home loan business; stock up 2%
₹1413.30 in intra-day deals on Thursday, February 15 after the largest private sector lender informed in a press release that has witnessed healthy growth in its Home Loan Business post its merger with HDFC. The lender announced that its home loan business experienced a stable and healthy double-digit YoY growth for two quarters, ending December 31, 2023. The growth in sales turnover has come on the back of a wider distribution network with a 3.6 percent sequential growth as of December 2023, the highest amongst peers in home loans.
It also added that the turnaround time has been reduced to one-third post-merger and savings accounts for incremental disbursals have moved to 80 percent from 35 percent. This sets the foundation for a stronger digital connection with incremental customers. Furthermore, the Bank’s market share has grown approximately by 18 percent to 20 percent on incremental disbursals, post the merger, stated the lender.
"The Bank’s fundamental strategy has been to improve the turnaround time of processing at the front end. Post-merger turnaround time has been reduced to almost one-third. This coupled with the erstwhile HDFC Ltd.’s strength of connecting with customers in person is a potential game changer in terms of both sales turnover and cross-selling.
Added to this strategy is a renewed focus on the self-employed segment which will further increase opportunity size. Post-merger, the Bank has already launched and expanded its product basket through banking surrogates as well as GST programs for better assessment of such profiles," highlighted the lender. Despite today's rise, the stock is still around 20 percent away from its 52-week high of ₹1,757.80, hit on July 3, 2023, and had hit its 52-week low of
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