Aditya Puri, MD & CEO of HDFC Bank has assured the employees that their jobs and bonuses are secure.
HDFC Bank has adequate capital and clean loan books.
HDFC Bank’s employees need not fear about their jobs or bonuses amid the ongoing disruptions led by the coronavirus crisis, outgoing Managing Director & CEO Aditya Puri said. Citing the possibility of a strong quarterly result in the second quarter of the current fiscal year and the quarters to come, he said that the bank has adequate capital and clean loan books. As Aditya Puri is set to retire this month, he has been addressing the bank employees every day for the last few days, an employee with HDFC Bank told Financial Express Online.
It is to be noted that the Reserve Bank of India has approved the appointment of Sashidhar Jagdishan as the next managing director of HDFC Bank, succeeding Aditya Puri. Aditya Puri said that the assurance regarding jobs and bonuses is being given on behalf of the management team including his successor Sashidhar Jagdishan.
In an interview with CNBC TV18 last week, Aditya Puri had said that the business is back to pre-COVID levels and the lender is well-positioned to aid the revival of the Indian economy. He had added that the bank has adequate capital and there is no strain on the balance sheet.
HDFC Bank apprised that its individual loan disbursements in the September-ended quarter reached 95 per cent of the level seen in the last year, and September witnessed the strongest recovery since the coronavirus pandemic kicked in. While the bank registered a 16 per cent increase in advances, its deposits grew by 20 per cent in the second quarter of this fiscal. The announcement also led to a surge in its share price today.
Meanwhile, the results of HDFC Bank throw some optimism amid the possibility of a skyrocketing NPA showed in the Financial Stability Report (FSR) released by the Reserve Bank earlier this year. The report showed an estimate that the gross non-performing assets of all banks may jump from 8.5 per cent in March 2020 to 12.5 per cent by the end of this fiscal under the baseline conditions, and to 14.7 per cent by March 2021 under the severely stressed conditions.