The CASA deposits of the bank grew by 2.2 per cent quarter-on-quarter(QoQ) to Rs 8.35 trillion in Q3 FY24 with CASA ratio inching up to 37.7 per cent from 37.6 per cent in Q2 FY24
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The home loan business has become both an asset and liability-generative business for HDFC Bank, with 80 per cent of incremental disbursals being to customers who have a savings account with the bank. This was a great Current and Savings Account (CASA) generator for the bank, said Arvind Kapil, Mortgage Head of HDFC Bank.
The CASA deposits of the bank grew by 2.2 per cent quarter-on-quarter (Q-o-Q) to Rs 8.35 trillion in the third quarter of financial year 24, with the CASA ratio inching up to 37.7 per cent from 37.6 per cent in the second quarter of financial year 24.
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Last Updated: Feb 15 2024 | 03:59 PM IST
тАЬPre-merger, about 30 per cent to 35 per cent of incremental disbursals were to customers with an HDFC Bank savings account. This has reached about 80 per cent of incremental disbursals, post-merger,тАЭ Kapil said.
He added, тАЬThe Home Loan business of the bank has become both an asset and liability generator and is growing sizeably. This leads to a higher stickiness quotient and a stronger customer connect with the bank for a longer duration.тАЭ
The share of the bank has risen to 20 per cent in incremental disbursals post the merger. The lender also said that it has recorded robust and consistent double-digit growth year-on-year (Y-o-Y) in home loans in the first six months post the merger.
Kapil added that the bank made a 3.6 per cent sequential growth in the home loan segment in the quarter ending 31 December 2023, to nearly Rs 3.6 trillion, which was claimed to be the highest among its banking peers engaged in home loan business.
He also added that before the merger, HDFC used to focus more on the salaried class of customers, but now the focus on the self-employed segment will also aid in increasing the opportunity for the lender.
After the merger, Kapil said that the bank has launched and expanded its product basket through banking surrogates as well as Goods and Services Tax (GST) programmes for better assessment of such profiles.
In addition, the bank plans to launch Home Refurbishment Loans in mid-March 2024 and a Home Saver Product by April 2024.
Furthermore, the bank will convert all erstwhile HDFC’s service centres to branches in a phased manner, and its entire mortgage team will also become relationship managers.
Speaking on the retention rate, тАЬWe have a high retention rate of our employees from HDFC Ltd post the merger,тАЭ Kapil noted.
He said that HDFC Bank has started to cross-sell its products through the service centres from 1 February 2024. As part of enhancing the cross-sell strategy, home loan customers will be able to avail Consumer Durable Loans, Credit Cards, Wealth Advisory Products, Unsecured Loans, and Home Refurbishment Loans.
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