CMP: ₹1,181.3

Target: ₹1,296

Over the past 10 years, HDFCBK has steadily grown its loans market share to about 8.5 per cent of the system, driven by steady branch addition, improving employee productivity, and effective use of technology to gain distribution efficiency. In wholesale loan segment, deepening client relationships and greater share of wallet will help in further market share improvement, as clients look to consolidate their relationships to a few banks. HDFC Bank also gains market share. Within retail loans, HDFC Bank has been institutionalising the sales process so as to increase the pace of customer acquisition. In Q3FY20, Advances growth came in healthy at 20 per cent y-o-y to ₹9,36,030 crore.

HDFC Bank has maintained a largely stable asset quality with GNPAs between 0.9-1.4 per cent over FY15-FY19. In Q3FY20, GNPAs continued to remain steady at 1.42 per cent. A majority of HDFC Bank’s customers in unsecured retail loans belong to the salaried segment.

Contrary to expectations, there have not been any major lay-offs or job losses in the economy and has not significantly impacted the segment. Incremental growth is being driven by deepening penetration in the salaried segment. HDFC Bank also has high proportion of loans to existing customers, especially in credit cards and personal loans.