Not doing mortgages for sake of doing, there's competition from PSU banks on pricing: HDFC Bank

HDFC Bank

The management of the HDFC Bank on January 22 said the bank is not doing mortgage loans for the sake of doing, but there is a competition from state-owned banks on the pricing front in this segment.

“We don’t do mortgages for the sake of doing it. There is competition from PSU banks on pricing in mortgages,” HDFC Bank’s management said during the post-Q3 earnings conference call.

They also added that the lender also ensures that the customers of the mortgage loans maintais a balance of at least Rs 35,000 in the savings bank account.

Further, they said the lender automatically opens SB account when new to bank customer comes for home loans.

During the October-December quarter, retail mortgages of the bank rose 9.7 percent on-year and 1.18 percent on a quarterly basis.

Retail mortgages of bank stood at Rs 8.17 lakh crore in December quarter in FY25, as compared to Rs 8.093 lakh crore in September quarter FY25, and Rs 7.45 lakh crore in December quarter previous fiscal year.

The share of the mortgages of the total retail loans stood at 61 percent, which is followed by 15 percent personal loan.

Earlier today, HDFC Bank reported its financial results for the third quarter of FY25, posting a 2.2 percent year-on-year rise in standalone net profit to Rs 16,736 crore. The earnings surpassed Street expectations, with analysts projecting a net profit of Rs 16,650 crore, according to a Moneycontrol poll.

The bank's net interest income (NII), a key metric of the bank's earnings, grew 8 percent YoY to Rs 30,690 crore during the quarter, in line with expectations. Net Interest Margin (NIM) for the quarter was flat at 3.4 percent.