HDFC Bank sees strong retail traction across segments, expects festive momentum to sustain

HDFC Bank is witnessing strong momentum across its retail lending segments and expects the ongoing festive season to further boost consumption, said Arvind Vohra, Group Head of Retail Assets at HDFC Bank, in an interview with CNBC-TV18 on the sidelines of Global Fintech Festival.

Vohra said the confluence of three major factors is driving consumption this year—changes in income tax slabs, GST rationalisation, and a downward trend in lending rates. “We are seeing the confluence of three things that have happened this year. The first is the change in income tax slabs in the early part of the year. Then we have the GST rationalisations, which became effective from 22nd of September. And the lending interest rate cycle is anyway on a downward trend,” he said.

The bank is already seeing positive signs of consumer spending as the festive season begins. “The early signals we are seeing during Navratri, which is really the onset of the festive season in India, are very healthy. We believe that the festive season is going to be good,” Vohra said, adding that the bank is optimistic about the months ahead.

He noted that the second half of the financial year typically benefits from festive demand, which should help sustain growth momentum. The bank has also introduced new initiatives to capitalise on the trend. “We have launched a campaign called Festive Treats. Diwali is all about sweets, and these are the treats from the bank’s perspective for all our customers and prospective customers,” he said. The campaign brings together the bank’s best deals, rates, and offers under one umbrella and is supported by express loan journeys to make borrowing faster and more convenient.

Vohra said HDFC Bank continues to see healthy traction across all major retail segments, including personal loans, business loans, and auto loans. “In some areas, the traction could be a tad higher compared to others, but broadly, all key segments are showing healthy growth,” he said.

On concerns around unsecured lending, Vohra clarified that the bank’s asset quality remains robust. “We did not have any stress because we believe that credit prudence is fundamental to banking,” he said. The lender has maintained what he described as a “very pristine portfolio quality” over the last six to eight quarters, across both secured and unsecured books.

He also said that the recent rate cuts by the Reserve Bank of India are likely to stimulate credit demand over time. “Rate cuts usually mean higher demand. From a medium to long-term perspective, that’s positive news,” he said.

Vohra expressed confidence that the combination of supportive policy measures, improving sentiment, and festive demand will continue to sustain retail growth through the second half of the year.Read about our editorial guidelines and ethics policy