The bank is now funding up to 100 per cent of the loan-to-value (LTV) amount for two-wheelers (on-road prices) and for consumer durables. Earlier, it was funding 85 per cent for the former. The new scheme was put in place since the start of the festive season.

Consumers having a gross monthly salary over Rs 20,000 and a minimum of three months' banking relationship, with an average quarterly balance of more than Rs 4,000, are eligible for two-wheeler financing.

A senior bank official said these parameters apart, the profile of consumers they were looking for included government employees, teachers in reputed colleges, schools and coaching classes, employees of top companies and their own account holders.

“HDFC Bank has been financing two-wheelers since 2001 and has gradually built a book size of over Rs 3,600 crore. Based on our portfolio behavior, we have identified the above profile and have been financing two- wheelers up to 100 per cent,” he added.

The bank is also offering up to 10 per cent funding for buying consumer durables. The interest rates for buying such products such as refrigerators or washing machines are between 16 and 22 per cent, depending on whether the person is salaried, a self-employed business person or a self-employed professional. The minimum amount a lender has to borrow for taking this loan is Rs 40,000.

Up to 100 per cent funding on consumer durables can be availed of even by a non-HDFC Bank account holder. The full LTV will broadly depend on the product, loan size and profile of the customer.

The move comes amid slack credit offtake this festive season, in addition to competition from non-bank finance companies that provide 100 per credit funding on two-wheelers and consumer durables.

HDFC Bank has managed to maintain a stable asset quality base and sound retail customer base as well. Hence, some analysts believe it will be able to maintain healthy asset quality. “HDFC Bank has shown that it knows how to have a sound retail consumer base; retail has been a strong point for them. Plus, the pricing as in the case of consumer durables is the same as unsecured credit; therefore, the risks are covered,” said Vaibhav Agrawal, vice-president of research–Banking, Angel Broking.

At the end of the July-September quarter, gross non-performing assets (NPAs) were 1.02 per cent of gross advances as compared to 1.09 per cent in the September quarter last year. Net NPAs were unchanged at 0.3 per cent, both year-on-year and sequentially.

Overall advances in the quarter for the bank grew by 21.8 per cent over a year to Rs 3.27 lakh crore. Loan growth was 18 per cent and retail loans grew 17 per cent, on the back of a strong rise in automobile and personal loans, the management had said in a conference call.