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HDFC BANK

HDFC Bank recorded a strong loan book increase of 15.4%/4.4%, YoY/QoQ, led by retail, commercial, and rural banking in Q2FY22, . Retail book growth has stepped up, with a 13%/5%, YoY/QoQ, increase compared to an almost flat QoQ increase in Q1FY22. The cards, housing, and vehicle financing sectors are responsible for the increase in the retail book. Through the direct assignment method, the bank bought INR 71.3 bn in home loans from HDFC (up from INR 54.9 bn in Q1FY22). Commercial and Rural loans continued to gain traction in non-retail loans, up 28%/7.5% YoY/QoQ (up 25%/4%, YoY/QoQ in Q1FY22). It has established a strategic partnership with Paytm to provide financial services to users. While there are still some nagging concerns, such as the RBI's restriction on new digital launches and recent whistleblower claims about fees, we anticipate these to be addressed appropriately.