The first half of the calendar year has been a rather dry one for banks in t
erms of lending, especially retail loans. Consider HDFC Bank for that matter. After a meteoric increase in retail lending in 2004, 2005, 2006 and the first half of 2007, it came to a halt. In H1 of the calendar year 2006, HDFC Bank disbursed retail loans worth Rs.32.77 billion, as against Rs.21.66 billion for the same period in the previous year; an increase of 51%. The first half of 2007 saw the retail lending growth dropping from 51% to 25% to Rs.41 billion; courtesy hikes in interest rates. So is there some relief in the coming festival season? Do banks really have the room to provide some kind of relaxation to customers? Well, it appears to be an emergency situation where some big banks are ready to pay from their pockets, as they want their business kicking again.
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erms of lending, especially retail loans. Consider HDFC Bank for that matter. After a meteoric increase in retail lending in 2004, 2005, 2006 and the first half of 2007, it came to a halt. In H1 of the calendar year 2006, HDFC Bank disbursed retail loans worth Rs.32.77 billion, as against Rs.21.66 billion for the same period in the previous year; an increase of 51%. The first half of 2007 saw the retail lending growth dropping from 51% to 25% to Rs.41 billion; courtesy hikes in interest rates. So is there some relief in the coming festival season? Do banks really have the room to provide some kind of relaxation to customers? Well, it appears to be an emergency situation where some big banks are ready to pay from their pockets, as they want their business kicking again.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
