HDFC Bank More Vulnerable to India Personal Loans Risk: Moody’s
(Bloomberg) -- HDFC Bank Ltd. has higher exposure to the personal loan segment, making it more vulnerable to a potential increase in asset risk, Moody’s Investors Service says in note dated Sept. 17.
RBI decision to reduce risk weight on consumer loans such as personal loans to 100% from 125% is credit negative
This will encourage banks to raise exposure to the segment at a time when credit risks are rising in a slowing economy
Personal loans have seen a compounded annual growth rate of 22% over fiscal 2013-2019 versus 11% growth in overall bank loans in the period