MUMBAI: Mumbai: HDFC Bank said that home loans were growing faster than the industry post-merger and that the home loan business is helping to scale up deposits.
The bank will introduce a seamless journey for home refurbishment loans by mid-March, followed by a Home Saver product in April 2024. Home saver loans are typically loan products where the borrower can use his savings to finance the home loan, bringing down interest costs.
“One of the biggest opportunities was to generate CASA, and initial signs are encouraging. Pre-merger, about 30% to 35% of incremental disbursals were to customers with an HDFC Bank savings account. This has reached about 80% of incremental disbursals post-merger. The Home Loan Business for the Bank has become both an asset and liability generator and is growing sizeably,” said Arvind Kapil, head of home loans at HDFC Bank.
He added that the bank has reduced loan turnaround time to one-third of its previous duration. Savings accounts for incremental disbursals have surged to 80% from 35%, indicating a stronger digital connection with new customers.
The bank has renewed its focus on the self-employed segment to increase opportunity size further. It has launched and expanded its product basket through banking surrogates and GST programs to better cater to such profiles.
According to Kapil, the bank’s home loan business has become a significant asset and liability generator, leading to stronger customer connections. Despite a larger book than its peers, the bank’s model is generating substantial benefits while maintaining traditional underwriting standards.
The bank is converting all former HDFC Ltd. service centres into branches and transforming its mortgage team into relationship managers. Cross-selling of products/services commenced from February 01, 2024, allowing home loan customers access to various offerings. The bank aims to focus on cross-selling for existing and new customers, leveraging its digital journeys without incurring additional acquisition costs.
