HDFC Bank, one of the leading public banks in the country has been adversely hit by COVID-19. Their digital launches, internet banking, and payment system were recently halted by RBI due to disruption by an outrage. This was not the first disruption that RBI had gone through. In the past too they had to face the wrath of RBI for failed services. The current outrage affected the customer’s ATMs, Net banking, and UPI channels. Considering their recent launch of an online portal for Personal Loan, the bank had to pay a hefty price in the form of loss of shares.
The bank is expecting a 40-60% increase in retail loan disbursals for the second half of the current financial year as the economic recovery underway has given a new life and is bringing the business back to pre-Covid levels. Though HDFC Bank business loans and automobile loans ( which made up over 35% of their loan book) have returned to a double-digit growth rate, HDFC Bank personal loan experience a YoY growth rate of 9.3% alongside the credit card debt slowing to a 4.9%. Due to fewer delinquencies for the salaried and the government sections of the society, the personal loan repayments for the lender is better than that of pre-Covid times. For the semi-urban and rural areas, the traction was stronger due to normal monsoons and HDFC bank said in a statement that they are hoping for the urban areas to catch up at a higher rate soon.
HDFC Business Loans accounted for 13% of the total retail advance in the last quarter which led to the loan book growing 1.3% to Rs. 63,511 crore compared to average growth of 25% during the last five years. Despite all the other forms of HDFC loans gaining profits, with people’s increasing demands, the repayment and growth in case of personal loans remained at a standstill for India’s leading Private bank HDFC Bank.