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HDFC upbeat on loan growth in FY14

Source : BUSINESS_STANDARD
Last Updated: Sun, Dec 09, 2012 00:26 hrs

pThe credit growth is expected to be better in the next financial year on the back of higher gross domestic product GDP growth according to HDFC Bank Ltd the country&rsquos second largest private lenderpp&ldquoIf you do have the economy going back to a six per cent-plus growth rate the financing needs of a growing economy would be met by the banking system I see no reason why credit growth won&rsquot be somewhere at 16-17 per cent range this year and potentially going up to the higher teens as the GDP growth picks up&rdquo said Paresh Sukthankar executive director HDFC Bankpp&ldquoAs we get into the next financial year there is every chance that we move to a growth rate which is somewhere between 6-65 per cent and potentially thereafter somewhere closer to seven per cent&rdquo Sukthankar addedppThere is some willingness to discuss the possibilities of new projects coming up and according to Sukthankar that is the first sign of the right turn If people are looking at rate cuts as the main driver of economic growth that may be asking for too much because the room for rate cuts is probably around 50 basis points for the next year said SukthankarppEconomists are also of the view that growth in the economy is finally bottoming out &ldquoWe see growth picking up gradually to 65 per cent in 2013 and further to 72 per cent in 2014&rdquo said Tushar Poddar managing director and chief India economist of Goldman Sachs on Wednesday According to Poddar Indias GDP will accelerate from 54 per cent in 2012 and shall remain high through 2015-16p

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