Post-merger balance sheet to enable HDFC Bank to invest more in infra

July 21, 2023

The merger of parent HDFC with HDFC Bank will allow the larger merged entity invest more in infrastructure and mortgage projects, MD and CEO Sashidhar Jagdishan said in the bank’s annual report for FY23.

He said, “A bigger balance sheet post-merger will enable HDFC Bank to take a larger exposure in infrastructure projects. This means we can participate more meaningfully in India’s growth story and contribute to nation-building. In light of all this, the pace at which we aim to grow – we could be creating a new HDFC Bank every 4 years”.

Saying that the merger perhaps could not have been timed better, Jagdishan said that the emotion linked to home buying gets transferred to the home loan service provider and helps build lifelong bonds with customers. Further, only 2 per cent of HDFC Bank’s customers currently source their loans from the bank while 5 per cent take it from other institutions, which in “itself is a huge opportunity”.

HDFC Bank will build these customer relationships by offering a bouquet of the bank’s and subsidiaries’ products and services across saving and current accounts, personal loans, insurance, investments and home loans.

“A compelling value proposition to the customer, that probably does not exist in the market at the scale at which this is envisaged. Going forward this is clearly going to be a game changer,” he said.