Banking Lifecycle
CREDIT PENETRATION
GDP growth to drive bank credit growth
Banking sector credit growth has been ~2x the average
YoY GDP growth during FY10 to FY22
Credit growth rate for banks compared with GDP growth rate (%)
HDFC BANK
Growing share of private banks in bank credit
Category-wise share of credit
Average YoY growth
100%
FY'10-14
FY'14-18
FY'18-233
90%
GDP
7.2%
7.6%
3.8%
80%
Overall banking sector1
17%
10%
9%
70%
HDFC Bank
24%
21%
19%
60%
50%
Growth multiplier²
40%
Overall banking sector
2.4
1.3
2.4
30%
20%
Credit growth mirroring GDP growth
multiplier of ~2.4x
-
10%
0%
2011-2014
■PSU Banks ■ Private Banks
2015-2018
2019-2022
■Foreign Banks
Source: International Monetary Fund, HDFC Bank, Reserve Bank of India
1. Overall banking sector credit includes scheduled commercial banks
2. Banks' YoY growth rate / GDP growth rate
3. December 2022 used as proxy data for overall banking sector for FY23
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HDFC Bank Presentation, May 2023
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