HDFC Bank's mortgage portfolio surges 18-20% following merger; asset base reaches up to Rs 18 lakh crore: Report

HDFC Bank's mortgage business experienced a significant 18-20% incremental growth following its merger, according to Arvind Kapil, Country Head of Mortgage Banking at HDFC Bank. The merger, marked as a milestone in India's corporate history, occurred on April 4, 2022, as HDFC Bank acquired the largest housing finance company for approximately $40 billion, thereby creating a financial services giant. This merger resulted in HDFC Bank's combined asset base reaching around Rs 18 lakh crore.

Since the merger, HDFC Bank has seen stable and robust double-digit year-on-year growth until December 31, 2023. The bank also reported a sequential growth of 3.6% as of December 2023. Notably, post-merger savings accounts have contributed significantly to incremental disbursals, increasing from 35% to 80%.

In terms of market share, HDFC Bank has witnessed a remarkable 18-20% growth in incremental disbursals, consolidating its leading position in the home loan segment. This growth surpasses that of its peers in the industry.

One of HDFC Bank's key strategies post-merger has been to enhance the turnaround time for processing at the front end. As a result of these efforts, the bank has managed to reduce the turnaround time to nearly one-third of its pre-merger duration.

Overall, HDFC Bank's post-merger performance underscores its commitment to growth and efficiency, solidifying its position as a key player in the mortgage and home loan market segment.