HDFC Bank doubles mid-corp loan book to over Rs 90,000 crore in 3 years

Mumbai: HDFC Bank has more than doubled its mid-corporate loan book to over Rs 90,000 crore in the past three years, arguably making it the largest player in the segment.

If the bank maintains its June quarter loan growth rate of 21% in the ongoing quarter as well, which analysts see quite likely, the second largest lender will race past the Rs 1-lakh-crore milestone by the month-end itself.

Mid-corporates are those firms with an annual turnover of Rs 200 crore to Rs 1,000 crore.

Out of the Rs 4.07 lakh crore of its wholesale banking book, over Rs 90,000 crore was from the mid-corporate segment, which the bank tags as emerging corporate group, as per its June quarter balance sheet.

The mid-corporate loan book was just about Rs 45,000 crore in June 2016 and doubled to Rs 90,000 crore in June 2019, a senior bank official, who did not wish to be identified, said.

At the system level, around 15% or Rs 9 lakh crore of the Rs 60 lakh crore wholesale loan book are mid-corporate loans. What is significant is that it's not just the bulging loan book where HDFC Bank leads the industry, but also in terms of the geographical coverage of mid-corporate segment.

In the latter segment, the bank has presence in 49 cities with 180 dedicated relationship managers servicing over 3,500 companies.

Three years ago, in the mid-corporate segment, the bank was present in 18 cities and the number of clients was around half of over 3,500 now.

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