HDFC Bank was adjudged the India’s best bank for SMEs on the Asiamoney Best Bank Awards 2021. In its analysis the journal stated on its web site HDFC Bank’s transformation of its micro, small and medium-sized enterprise (MSME) enterprise over the previous few years makes it a worthy winner of this award.
The Annual Best Banks survey of the monetary journal based mostly in Hong Kong, goals to establish which banks in every market have excelled throughout a variety of core banking actions over the previous 12 months.
Asiamoney’s award selections had been made by a staff comprising senior journalists after receiving detailed submissions from market members and along side analysis into the banking and capital markets by editorial committee. The staff additionally visited every nation or territory to satisfy main bankers and collect consumer and competitor suggestions.
“The numbers are impressive. Advances to MSMEs stood at Rs 2.02 trillion ($28 billion) as of December 31, 2020, up 38% from a year earlier and representing a compound annual growth rate of 23% in the past six years, which HDFC says makes it India’s second-largest bank for MSME lending. The bank’s management also believes the MSME lending book will soon be larger than the bank’s corporate book,” writes Asiamoney.
In its wholesale banking division, the MSME enterprise turned the second-largest income contributor final 12 months. But the push in the direction of SME shoppers below Rahul Shukla, group head of company banking and enterprise banking, has not come on the expense of high quality, it added.
Asset high quality has remained sturdy regardless of the affect of Covid-19 on companies. The bank’s MSME-related non-performing asset (NPA) ratio was 0.7% in December 2020, down from 1.33% in March 2020 and 1.16% in March 2019.
“We are so excited to see our work in the SME business getting recognized and are happy that we have been able to contribute to this important sector,” Shukla stated, including that SMEs are the engines of financial development and partnering with them helps in total prosperity of the nation.
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