Mumbai: HDFC Bank can double in size every four years, but it is not in a race to become the largest among all, says Deepak Parekh, chairman of the private sector lender’s parent company HDFC Ltd.
“Our bank is growing very well, we are satisfied with that. We are not planning to be State Bank of India, we are not looking to grow more than we can chew, what we can handle,” he said.
“Yet, we (HDFC Bank) have been growing at 25-30%.”
Asked if this growth rate would continue, Parekh said that he was confident of 20-25% growth in the medium term. He replied in the affirmative when asked if HDFC Bank saw itself doubling in size every four years.
At the same time, Parekh asserted that he did not want to be part of any race to get to the top slot.
HDFC Bank, in which HDFC Ltd holds around 23% stake, is currently the country’s second largest private sector lender after ICICI Bank, while state-run SBI is the largest of all.
At the end of last fiscal ended 31 March 2010, HDFC Bank had total assets of Rs 2.2 lakh crore and total business, comprising of deposits and advances stood at Rs2.9 lakh crore.
Besides its banking operations through HDFC Bank, HDFC group is also present in mutual fund, life and general insurance and other financial services such as brokerage.
Talking about other subsidiaries promoted by HDFC, Parekh said that they were the second largest player in asset management (mutual fund), but most profitable.
HDFC Mutual Fund had asset under management to tune the tune of over Rs1 lakh crore at the end of May 2010.
In life insurance, there were some issues which have been corrected now, he said, adding, performance has improved significantly.
“In non-life, we are way down because we had a difficulty in our relationship with our partner. So, if you look at the last two years since we have Munich Re as a partner we have really come up from right at the bottom to 4-5th level and our aim is to become top three in the next couple of years.”
In general insurance business, HDFC started with US-based Chubb Corp as its foreign partner, but parted ways in May 2007. Later, it joined hands with German insurer Munich Re.
Parekh, however, asserted: “I don’t see that we are unhappy about growth in any other sector and partnerships, and in our management... there is continuity, and so, we are reasonably content.”