HDFC and HDFC Bank merger will facilitate higher credit growth in India: HDFC Bank chairman

"Housing Finance is going to be a huge growth opportunity and one of the key drivers of India's GDP over the next decade. With the advantage of lower cost of funds and the strong distribution network that we have built, among several other factors, there is huge merit in seizing this opportunity," Chakraborty said in his address at the 28th Annual General Meeting of HDFC Bank.

"A large and more stable balance sheet that the merger would create, would also enable us to step up our exposures and facilitate higher credit growth in the economy," he said.

On April 4, 2022, HDFC Bank and HDFC Limited announced a composite of scheme of amalgamation, subject to various regulatory approvals.

"We have made necessary applications to various authorities. The Board is closely monitoring the merger process for approval of various aspects of the merger, as required by the legal process," Chakraborty said.

Chakraborty, a former Economic Affairs Secretary, expressed hope that the Indian economy would register healthy growth in the current financial year. "Since a large part of the GDP consists of domestic consumption, I see a healthy growth path during the year," he said.

"Given the anticipated resurgence of growth in GDP, the huge scale of the banking opportunity in India, the enormous strength of our franchise and our resilient balance sheet, we believe that we are extremely well poised to leverage the immense opportunities that lie ahead of us," he said.

HDFC Bank on Saturday said its net profit rose by 19 per cent year-on-year to Rs 9,196 crore for the quarter ended June 30, 2022.

The bank's core net revenue (excluding trading and Mark to Market losses), grew by 19.8 per cent to Rs 27,181.4 crore for the first quarter of the current financial year as compared to Rs 22,696.5 crore recorded in the corresponding period of the last fiscal. (ANI)