The private sector lender HDFC Bank is confident of achieving 18% to 20% growth in advancing loans across various segments accompanied by stable margin and better asset quality in smaller cities.
On the matter, Chairman of the bank, Mr. Deepak Parekh said that given the stable competitive environment in the sector, the bank can surely achieve 18 percent to 20 percent loan growth and improve the asset quality in smaller towns. It is reported that currently home ownership levels in the country have a lot of scope of penetration and banks and financial institutions can reap into its benefits.
The management of the bank further added that though there is moderate demand in metro cities due to high interest rates and inflated property prices, small cities are witnessing an increase in demand for home loans.
Presently, the bank has a branch network of about 320 branches spread across the country. Moreover, it also has 2, 500 branches of HDFC Bank Market, the bank's mortgage loans arm. IndusInd Bank and HDFC have also entered into a tie up recently.