 "Sashidhar Jagdishan, MD & CEO, HDFC Bank")
The increase in balance sheet size following the merger with HDFC will help HDFC Bank take larger exposure to infrastructure projects, Sashidhar Jagdishan, the bank’s managing director (MD) and chief executive officer (CEO), said. Merger of the HDFC twins had come into effect from July 1.
The combined loan book of the merged entity was Rs 22.45 trillion and deposits were Rs 20.63 trillion as on June 30.
“A bigger balance sheet post merger will enable HDFC Bank to take a larger exposure to infrastructure projects. This means, we can participate more meaningfully in India’s growth story and contribute to nation building,” Jagdishan said in his address to the shareholders in the annual report for 2022-23.
He said the aim is to double business every four years. “In light of all this, the pace at which we aim to grow — we could be creating a new HDFC Bank every four years,” he said.
Commenting on the opportunity post the merger, he said, “Only 2 per cent of our customers source their home loans through the bank, while 5 per cent do it from other institutions. This itself, is a huge opportunity.”
Also Read
He said as India grows, home buying across the country will only accelerate and emerge as a key driver of India’s GDP over the next decade. This is especially true for affordable housing. “Investments in infrastructure are vital for India’s growth,” he said.
Jagdishan said HDFC Bank will continue to add more than 1,000 branches in the current financial year too.
“Overall, the bank plans to add 1,500-2,000 branches during the year. The concept of phygital branches will help us to be agile in meeting customer needs through digital transactions. It will also give customers a sense of engagement and security with a physical touch point,” he said.
HDFC Bank opened a ‘record’ 1,479 branches in 2022-23, a majority of which are in rural and semi-urban areas.
The bank plans to open 675 such branches in FY24, taking the total number in those locations to 5,000. As of March 31, 2023, HDFC Bank had 7,821 branches and 82.3 million customers.
