HDFC Bank has paid a price for hiking interest rates on loans.  The country’s largest private lender has lost around Rs 50,000 crore of wholesale loans to competition after it hiked rates in May.

Some customers were offered lower interest rates by market participants but we decided not to cut ours, HDFC Bank chief financial officer Srinivasan Vaidyanathan said in an analyst call on Saturday after the fiscal first quarter results.

In the fiscal first quarter ended 30 June 2022, HDFC Bank’s total advances grew 21.6% year-on-year to Rs 13,95,068 crore.

Retail loans grew 21.7% year-on-year to Rs 557,880 core while commercial and rural banking loans rose 28.9% to Rs 498,064 core and corporate and other wholesale loan rose 15.7%  to Rs 363,939 crore.

Retail loans now account for 39% of the bank’s loan book.

In the April-June quarter, retail, except the vehicle segment, grew 25% year-on-year, said Vaidyanathan. The vehicle segment was impacted by supply chain issues, he added.

HDFC Bank reported a 19% year-on-year rise in standalone net profit to Rs 9,195.99 crore for the quarter ended June 30, after absorbing a mark-to-market (MTM) loss of Rs 1,311.7 crore.