HDFC Bank, the largest private sector lender in India, has ambitious plans for expansion in the coming years. Srinivasan Vaidyanathan, the Chief Financial Officer, shared the bank’s goals during a post-results press conference on January 16.
Branch Expansion Achievements:
In the last twelve months, HDFC Bank has successfully added 908 branches, including 146 in the last quarter alone. The previous year saw the addition of 1,481 branches, bringing the current total to 8,091 branches as of the October-December quarter of the financial year 2023-24.
Future Targets:
The bank aims to further increase its reach, planning to have a total of 13,000-plus branches in the next three to five years. This strategic move aligns with the goal of fostering granular deposits.
Importance of Branch Network:
Vaidyanathan emphasized the significance of a widespread branch network in driving granular deposit growth. He highlighted the bank’s commitment to expanding its reach to connect with more customers.
Financial Performance Highlights:
On January 16, HDFC Bank reported a net profit of Rs 16,372 crore for the October-December quarter of 2023-24, marking a 33.5 percent increase from the previous year. The net interest income (NII) also saw a significant rise, reaching Rs 28,470 crore, a 23.9 percent increase compared to the corresponding quarter in the previous fiscal year.
Asset Quality and Loan Growth:
While the gross non-performing assets (NPA) slightly increased to 1.26 percent, the net NPA for the quarter decreased to 0.31 percent. The bank experienced a substantial growth in total deposits, witnessing a 27.7 percent increase to Rs 28.47 lakh crore. The total advances of the bank surged by 62.4 percent to Rs 24.69 lakh crore.
Loan Breakdown:
The breakdown of loan growth includes a remarkable 111 percent increase in domestic retail loans, a 31.4 percent growth in commercial and rural loans, and an 11.2 percent rise in corporate and wholesale loans (excluding non-individual loans of eHDFC Ltd. of approximately Rs 98,900 crore).
In summary, HDFC Bank’s expansion strategy, coupled with its strong financial performance, positions the bank for continued growth in the competitive banking landscape.
