With Covid 19 hitting people all over the world, the banks and NBFCs weren’t spared too. With people’s economic downfall, the banks experienced huge losses. While certain banks remained unaffected a lot of them came to the verge of closing. Each bank developed new policies and ways to fight their way up the ladder. Most of the banks went online offering their customers all their products and services free of cost at their doorstep in the comfort of the homes of their customers making them more popular hence enhancing their YOY growth rates.
HDFC, one of the most popular and loved banks of India was not spared from the wrath of Covid 19 either. With a huge customer base, the bank incurred various losses especially in the field of personal loans. The bank officials of HDFC Bank in a statement on Tuesday said that the impact of Covid 19 led to the bank seeing a downfall in this quarter contrary to the other quarters. They said that though the last quarter was majorly affected by Covid 19 some of its remnants made their way into the ongoing quarter that led to lower retail loan origination.
Personal loan growth has been affected the most due to the pandemic. YOY growth reached 9.3%, with credit card debt slowing to 4.9%. The growth in home and auto loans weakened by reaching 8.2% and 8.4% respectively. The agricultural credit growth remained unaffected by the pandemic for it kept increasing at a 7.4% YOY growth rate.
The pandemic also affected HDFC bank debit and credit cards’ efficiency in efforts and certain fee waivers collection by approximately Rs. 800 crore. The bank’s share price was trading 2% higher by Friday. But if we see the overall growth rate of HDFC bank, it has witnessed a loss of 6%.