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Home loan biz will benefit from low cost of funds
August 14, 2023
Following a $64 billion mega-merger of HDFC twins, HDFC Bank chairman Atanu Chakraborty on Friday told shareholders at the company’s annual general meeting (AGM) that the private sector lender will benefit from the low cost of funds that a bank traditionally enjoys.
“As a consequence of this merger, the larger Balance Sheet of the Bank would offer to the national economy possibilities of higher credit growth, a larger bouquet of financial products and higher flows into affordable housing, agriculture, MSME etc,” Chakraborty said.
As a consequence of the merger, he said that 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 fulfill their aspirations to be homeowners.
It will also enable the bank to offer to its wider customer base, a full suite of financial products like life insurance, general insurance, health insurance, and investment products like mutual funds, by leveraging the strength of major entities like HDFC Ergo, HDFC Life and HDFC Mutual Fund, which now come into the Bank’s fold, as a result of the merger, he said.
In FY22, the bank’s balance sheet grew 19.2% to reach ₹24,66,081 crore while the net profit increased 19.3% to ₹44,109 crore for the year.
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