@ahmed Your observations look useful.
Currently many large banks are not offering even 7.2% interest, so this is a reasonably good rate.
People still prefer large systemically important banks like SBI, HDFC Bank and ICICI Bank as their primary banks and then generally consider other banks. Many of my friends in IT and Non IT industry have accounts in SBI and/or HDFC Bank.
Conservative lending practice of HDFC Bank will help them to grow in difficult times, and so far they have maintained their Gross NPA(s) below 1.5% for almost 3 decades. I believe this is the primary reason of their steady growth.
Episodes like Yes Bank and Many other banks having Gross NPA at much higher levels will face difficulties when the credit cycle turns around and the bad loans goes up.
Hence banking business is very tough business to do, and prudent lending practices are necessary to survive for very long period.
Subscribe To Our Free Newsletter |