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MUMBAI: India’s most valuable lender HDFC Bank plans to accelerate two-wheeler loan growth to nearly 25% in the current fiscal as rural demand picks up amid increased government infrastructure spending and a likely normal monsoon are expected to boost rural incomes.
The bank also became the first lender to finance nearly 12 lakh two-wheelers in a single year with improved focus on sourcing loans through digital means.
“If the rural markets are growing, the two-wheeler business will continue to grow.
Agrarian incomes are growing steadily and we will increasingly see these markets using twowheelers for local commute and that is where the big opportunity lies,” said Ashok Khanna, group head of vehicle loans, at HDFC Bank.
“This year we are going to go rural in a very big way.
We have had a great experience they pay on time and our collection systems are also very strong.”
The bank is now aiming to finance another 13.5 lakh two-wheelers at the end of the current fiscal year; a growth of 20-25% from the year ago.
The bank had financed 9.5 lakh two-wheelers at the end of FY17.
The bank’s two-wheeler loan book has now swelled to ₹10,000 crore with more than 30 lakh customers.
The private lender is also increasing focus on acquiring customers digitally with schemes like Zip Ride that offers pre-approved loans, Quick Paisa that enables loans through net-banking and over 2,000 dealerships armed with biometric devices.
The bank is now sourcing nearly 30% of its two-wheeler customers digitally, up from the modest 4% two years ago.
“If we were financing 100 two-wheelers, almost 25-30 two-wheeler financing is being done through digital modes,” said Khanna.
“The moment we get Aadhaar and bank details of a customer, it is very easy to give them loans within 10 minutes.
The customer goes through a seamless transaction.”
The lender is also looking to cross-sell loan products through its branch network of 4,700 and over 9,500 people working only in this segment.
Out of its current sourcing, 30% two-wheeler loans originate from internal customers every month.
“HDFC Bank is differently placed.
We have focused on the rural markets, not everyone is present there,” Khanna said.
“We operate at almost 2,700 locations in the country, and in some of those locations, we also cover a 50 km radius.
We have 4,700 branches and I am making use of all those to try and cross-sell two-wheeler loans.”
