HDFC Bank: Driving sustainable growth through strategic diversification

Chief Manager – Business Development Indika Vijayapathirana

Here are excerpts of an interview with HDFC Bank of Sri Lanka Chief Manager – Business Development Indika Vijayapathirana.

HDFC Bank of Sri Lanka has diversified its business operations in recent years. What prompted this strategic move?

HDFC Bank of Sri Lanka was originally established as a specialised housing bank with the primary objective of helping Sri Lankans fulfill their housing aspirations. Over the past four decades, our journey from a building society to a specialised licensed bank has been marked by consistent value creation for our customers and stakeholders.

However, as a State-owned enterprise, a specialised bank, and a listed entity on the Colombo Stock Exchange, we have a responsibility to evolve in line with changing customer expectations and market dynamics. Our decision to diversify in 2024 was therefore a strategic one—aimed at strengthening sustainability, enhancing resilience, and expanding the value we deliver to all stakeholders.

What new lending segments has the bank entered as part of this diversification?

 As part of our diversification strategy, we expanded our lending portfolio in 2024 to include leasing, gold advances, and personal loans. In 2025, we further strengthened our positioning by entering the green financing space, aligned with the Central Bank of Sri Lanka’s Green Taxonomy.

This expansion enables us to support environmentally sustainable projects while also providing customers with modern, flexible financial solutions beyond traditional housing finance.

Could you explain the Super Draft Leasing product and its key benefits?

Super Draft Leasing is an innovative, short-term vehicle financing solution designed to offer maximum flexibility to customers. It allows customers to upgrade their vehicles within the leasing period without incurring additional financial burdens.

Customers can make bulk payments or fully settle the lease within the first 4 to 24 months without any commitment fees or penalties. This flexibility allows them to align repayments with their cash flow and upgrade their vehicles when needed.

Additionally, part payments made during this initial period help reduce the monthly rental, enabling customers to continue the lease for up to five years at a lower installment. For those with short-term funding needs, the product also offers minimal monthly commitments with the option of early settlement within 24 months. This flexibility makes Super Draft Leasing a unique offering in the market.

HDFC Bank has introduced a gold purchase loan. What customer need does this address?

We identified a growing demand among young individuals, families planning weddings, and investors to purchase gold Jewellery. With the steady increase in gold prices, purchasing jewellery in advance has become a practical way to mitigate future price risks.

At the same time, gold continues to be viewed as a secure and attractive investment. Our gold purchase loan is designed to address both these needs effectively.

How does the Gold Purchase Loan work?

This facility enables customers to purchase gold jewellery at current market prices using a Gold Advance provided by HDFC Bank, with repayment structured over 12 monthly installments.

The process is fast, convenient, and does not require personal guarantees. This allows customers to avoid the impact of rising gold prices while also offering investors an opportunity to build secure and potentially rewarding assets.

To further enhance value, we have partnered with reputed jewellery suppliers and organised HDFC Gold Expos—special promotional events that benefit both customers and business partners.

Green financing is gaining global importance. How is HDFC Bank contributing to this area?

Sustainability is a key pillar of our long-term strategy. HDFC Bank has introduced a meaningful green finance model, starting with Green Personal Loans and Green Leasing facilities.

These products support environmentally responsible initiatives such as electric vehicles, solar energy systems, energy-efficient appliances, renewable energy projects, and waste recycling solutions.

How can customers participate in HDFC Bank’s green finance initiatives?

Customers can actively contribute to sustainability by opening HDFC Go Green Savings Accounts, which offer attractive returns while supporting environmentally responsible projects.

In addition, individuals and corporates can invest in Green Wealth Fixed Deposits, where funds are specifically allocated to finance sustainable initiatives. We have also introduced Go Green Corporate Savings Accounts for businesses, combining competitive returns with environmental responsibility.

This is a unique approach within Sri Lanka’s banking sector, as it empowers customers to directly contribute to environmental protection through their financial decisions.

What is the future direction of HDFC Bank of Sri Lanka?

With the appointment of our new General Manager/CEO Hemal C. Lokugeegana, and under the guidance of a highly professional Board of Directors, HDFC Bank is firmly focused on achieving sustainable growth from 2026 onwards.

Through strategic diversification, innovative products, and a strong commitment to sustainability, we are positioning HDFC Bank as a resilient and forward-looking institution—one that continues to create long-term value for Sri Lankans and contribute meaningfully to the national economy.