HDFC’s strength is its individual loan book, the quality of which is stellar as non-performing loans have always been less than 1% of the total loan portfolio. For the June quarter, individual loan book expanded by 16%, while the non-individual loans or loans to developers grew by 22%. The growth in developer loans has been faster than that of individual loans for many quarters now. HDFC has been consciously increasing the share of developer loans in its loan book simply because spreads on individual loans are lower. For now, HDFC seems to be comfortable with the increasing risk on its loan book through developer loans.

Source: Mint July 27, 2017 02:15 UTC