Given that a large part of the banking system is facing capital constraint, HDFC Bank, which does not face such an issue, will eye refinance opportunities and acquire good assets, according to Kaizad Bharucha, Executive Director.
Despite the bad loan challenges that the overall banking system is up against, Bharucha said he remains optimistic and excellent opportunities exist in further extending the working capital loan book across business segments.
Today, term loans constitute about 30 per cent of HDFC Bank’s corporate banking book, which grew over 20 per cent to ₹1.25 lakh crore in FY17.
“We will not succumb to the latest fad. A few years back infrastructure was the flavour of the season. Take power, for instance. The basics like fuel linkages and power purchase agreements were not in place.
“We took a conscious decision to limit our exposure to the infrastructure sector. At that point it looked like an opportunity lost….It is simply doing the basics right,” said Bharucha.