HDFC Bank expects SME business to grow fastest in 3-5 years

India’s largest private lender HDFC Bank plans to leverage its distribution in non-urban markets and digital strengths to expand its small and medium enterprise (SME) banking platform, its management told analysts.

Brokerage firm Jefferies hosted HDFC Bank chief executive Sashidhar Jagdishan and chief financial officer Srinivasan Vaidyanathan at its recent India Financial Summit.

The management told analysts that recent changes in the management structure were aimed to facilitate a far more focused approach towards execution in this vertical and Rahul Shukla will drive growth in the business. The bank expects the SME business to be the fastest-growing segment over the next three-five years.

“(The) bank is cognizant of the asset quality risks associated with this segment and hence will keep underwriting and collection teams tighter,” it said.

In April, HDFC Bank announced an internal…

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