Following the completion of the merger with HDFC Ltd, HDFC Bank Ltd would maintain home loans as the cornerstone of its growth strategy, with such credit likely to account for almost a third of the bank's portfolio going forward. The he rate of increase in home loans will largely reflect the rate of growth seen in HDFC's home loan portfolio. According to its investor presentation, individual house loans have increased over the past five years at a compound annual rate of 16%.
Since the pandemic, there has been an increase in the house loan market, which is considered as a stable growing industry with minimal delinquencies. Although the portfolio share would fluctuate depending on the growth of other areas, the organization is content for it to remain at current levels.
The largest housing financier in India will merge with the bank it parented in 1994, which is now the largest private banker in the nation. The merger, which was announced in April of last year, is anticipated to be completed in early July.
After the transaction, the bank will receive HDFC's 7.2 trillion-rupee ($87.32 billion) portfolio, which accounts for nearly 30% of the bank's total loan book. Included in this are individual mortgages totalling 6.02 trillion rupees. The housing loan business won't operate as a separate vertical, but HDFC's front-line workers will continue to drive growth in that product while expanding offers to other retail loans as well, according to the second official.
The banking division of HDFC Bank, which is its second-largest section, will increase its ownership from 48.7% to over 50% in the life insurance segment and from 49.9% to over 50% in the general insurance segment.
