Merger to boost fund flow to affordable housing, farm, MSMEs: HDFC Bank Chairman

The merger of HDFC Ltd and HDFC Bank came into effect from July 1, 2023

hdfc Merger, HDFC fund flow, affordable housing, farm, MSMEs, HDFC Bank Chairman, indian express news

The bank will continue to invest in technology and be at the forefront of the digital revolution that India is currently witnessing, HDFC Bank Chairman said. (Express File Photo)

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HDFC Bank Chairman Atanu Chakraborty Friday said the larger balance sheet of the bank after the merger would offer to the national economy possibilities of higher credit growth, a larger bouquet of financial products and higher flows into affordable housing, agriculture and MSMEs.

As a consequence of the merger, the bank is poised to benefit from the addition of a market leading home loan product which can now be directly offered through the bank’s large network of branches, helping a greater number of people fulfil their aspirations to be home owners, Chakraborty said.

“The home loan business will also benefit from the low cost of funds that a bank traditionally enjoys,” he said at the AGM of the bank.

The merger of HDFC Ltd and HDFC Bank came into effect from July 1, 2023. “This rise in per capita and disposable income will, after a point, result in huge uplift in the demand inter-alia for housing, automobiles, consumer durables and increased proliferation of financial services,” he said.

The bank will continue to invest in technology and be at the forefront of the digital revolution that India is currently witnessing, he said. “Our digital origination grew to 76 per cent and our financial transactions digital penetration grew to 95 per cent in FY-22-23,” Chakraborty said.

“The bank emerged as a star performer with the highest disbursal of Rs 44,823 crore in the ECLGS scheme benefiting over 1.25 lakh customers,” he said. The government and the Reserve Bank of India (RBI) provided special support to the MSME sector during the pandemic through various schemes such as interest moratorium, ECLGS, ECLGS extension and COVID support loans.
“Deeper financial inclusion will enable near universalisation in access to formal financing channels, which in turn, will improve productivity and income levels and the growth potential of the products championed by the bank,” he said.