HDFC Bank has formed a dedicated group oversight department to update the board on critical matters, chairman Atanu Chakraborty said at the annual general meeting on Friday. The group reports to an executive director of the bank.
“This enables the board to maintain a sharper visibility over risk, compliance, audit and conduct across the group. However, each entity continues to remain responsible and accountable for its operations,” said Chakraborty.
“Our effort has been to identify and address any transgression and incentivise adherence to our cherished values of governance, risk management and high standards of customer service,” he added.
90% of HDFC Bank branches now offer home loans
The chairman said the bank is continuously attempting to leverage technology to enhance the quality of customer services, adding that a significant part of customer onboarding, servicing and financial transactions happens digitally.
In FY25, the bank focused on alignment across the merged entity, maintaining performance stability and balance sheet optimisation, said Chakraborty. After merger, almost 90% of branches offer home loans.
“Our approach remained centered on risk-calibrated growth, prudent provisioning, disciplined execution, growing deposits and profitable loan growth. On account of various measures taken, including compression of credit growth, the CD ratio now stands at 96%,” he said.
Board approved 1:1 bonus share issue
According to Chakraborty, the bank has approached the regulators for capitalisation of reserves for issuance of bonus shares and change in the capital clause of the Memorandum of Association, pursuant to an increase in the authorised share capital. “We believe that the bonus issue would make equity shares of the bank affordable and increase its liquidity.”
The board has approved issuance of one bonus share for every share held as on the record date, which is August 27.