Private sector lender HDFC Bank is looking to grow its investment banking business and possibly double it over the next two years.
“We invest in the company. Organically we are growing and inorganically we are also happy to look at partnership options and ways to grow this business, ”said Rakesh Singh, Group Head – Investment Banking, Private Banking, Marketing and Products , HDFC Bank.
The focus will be more on equity, as the bank has done well on the debt side. In an interaction with Activity areaSingh said the lender is hiring staff and strengthening its teams in divisions such as equity research and investment banking sales.
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“The business will grow many times over. We hope it will double in two years, ”he said. Singh said the bank would also be keen to work on the government’s PSU divestment issues.
Asked about business credit demand, Singh said there were signs of recovery in the infrastructure sector. “We are seeing some typical levels of growth associated with new infrastructure in the market. Roads and highways, transport, storage, renewable energies, solar energy, town gas distribution, oil and gas, ports are experiencing a demand for credit, ”he said. .
Meanwhile, when asked about the uptrend in stock markets, he said this reflects the country’s potential in the medium term. “I don’t think the stock markets are going above fundamentals,” Singh said, adding that there was enough economic momentum for the country to emerge from the economic downturn induced by Covid. It could take a slightly longer period of two to three years, however, he added.
“The macro numbers are just an aberration because of the Covid-19 pandemic. The underlying collections of the goods and services tax are very strong and reflect the strength of the economy. One-off tax pressure caused by an event does not reflect the country’s poor economic fundamentals, ”he said.