HDFC Bank is planning to expand its small and medium enterprise (SME) banking platform, the management of India’s top lender said at the India Financial Summit hosted by a brokerage firm Jefferies.
The management also said that it was planning to leverage its distribution in non-urban markets and digital strengths for its expansion plan.
According to the HDFC Bank CEO Sashidhar Jagdishan and CFO Srinivasan Vaidyanathan, the objective behind recent changes in management is to have a more focused approach for the execution of the company’s plan.
They also said that the appointment of Rahul Shukla will drive growth and that SME business would grow fast over the next three-five years.
“(The) bank is cognizant of the asset quality risks associated with this segment and hence will keep underwriting and collection teams tighter,” it said.
In April, Rahul Shukla was given the responsibility of commercial banking and rural vertical as a part of an internal reorganization.
“On the client side, the bank is largely comfortable as 85% of retail clients work with corporates rated AA and above, where job losses have been low, SMEs were better prepared than in the past, and larger corporates have better liquidity in their balance sheet,” Jagdishan was quoted as saying.