With strong capital base, HDFC Bank to up corporate space play

At a time when a majority of lenders are going slow on corporate loans, HDFC Bank today said it is looking at increasing its market share in the segment on strong capital position.
"We are also optimistic about increasing market share. Thanks to our strong asset quality, we do not face capital constraints unlike a large part of the banking system," its executive director Kaizad Bharucha told reporters here.
He was, however, quick to add that the second largest private sector lender will not let go of its prudent philosophy, which has ensured that it is the bank with lowest non-performing assets.

In line with the consensus view among bankers, who are saying that greenfield projects are hard to come by as the private capex keeps sagging, Bharucha said the bank will eye refinance opportunities.
Bharucha, however, said in the last few years, it has been able to increase the share of its term loans in the overall corporate loan book to 30 per cent from 27 per cent.
It can be noted that capital constraints, coupled with wariness from chunky bad assets, is making its peers concentrate on the resilient retail segment in the last two years.

The bank had reported a total capital adequacy of 15.6 per cent with the core tier-I component at 13.6 per cent as of June 30 this year.

Bharucha said the lender's corporate loans grew 20 per cent to Rs 1.25 lakh crore in the recently concluded fiscal.
"Despite the challenges we remain optimistic. Excellent opportunities exist in further extending the WC loan book across business segments," Bharucha said.
He was speaking at an event where it announced the latest Greenwich study where the bank has been voted as the No. 1 in large corporate relationships and mid-market penetration.