Non-public sector lender HDFC Bank expects normalcy to return inside three months. In an interview, Arvind Kapil, HDFC Bank’s retail banking head, stated demand for loans was intact, as was evident from disbursals for auto and two-wheeler loans making a gradual restoration because the lifting of lockdown in May.
“As the lockdown opens up, everything will normalise. I expect it to normalise over the first 30-90 days. The only anxiety is of businesses opening up. However, we see a robust economy coming back pretty fast. In two-wheeler segment we are seeing 85% run rate (for loan disbursals) and we started barely one month ago. Auto is at 50% run rate. They are talking about 75% run-rate in the second month. People are talking about green-shoots. So, India’s demand is for real,” Kapil stated.
Out of its complete loan e-book of ₹9.93 lakh crore, HDFC Bank’s retail loans are worth ₹4.94 lakh crore, with auto loans constituting 16% and two-wheelers 1.9% of the portfolio.
The bank can also be beefing up its digital attain for each new and previous prospects, and had lately tied up with Maruti Suzuki to disburse auto loans digitally. “We are focussing on open market and internal customers,” he added.