HDFC Bank expects advances to grow over 30%

HDFC Bank expects advances to grow over 30%

New Delhi: Country’s second largest private sector lender HDFC Bank on 13 September said it expects its advances to grow more than 30% during 2007-08.

“We expect credit to grow over 30 per cent during the current financial year or may be higher than the last year," HDFC Bank Country Head (retail assets and credit cards) Pralay Mondal told reporters here.

During 2006-07, the bank’s loan portfolio witnessed a growth of 33.89% at Rs46,944.78 crore, against Rs35,061.26 crore in the previous year.

Interestingly, the overall credit offtake in the past 4-5 months have declined due to tight monetary stance by the Reserve Bank and is expected to be around 25% this year as compared to over 30% last year.

He said, credit quality of the bank is improving and there is a considerable improvement on cash management side as well.

Current Account Savings Account deposits are over 50%, indicating a reasonable cost of fund, he said.

Besides, the bank expects its Net Interest Margin (NIM) to be in the range of 3.9-4.2% during the current financial year.

“In the past 14 quarters, the bank has maintained NIM in the range of 3.9% to 4.2% and we hope to achieve the target this year also," he said.

Meanwhile, the bank launched HDFC Bank World Mastercard credit card targeting high-end customers with the credit limit of Rs3 lakh and upward.

The card comes with host of features and privileges including cash-back and discount offers, Mondal said.