Housing Development Finance Corporation (HDFC) shares fell as much as 3.09 per cent on Wednesday after it informed bourses that it will make an additional one-time special provision of Rs 450 crore in the quarter ended March 31.
At 1.40 pm, shares of HDFC were trading 2.37 per cent down at Rs 1,075. The scrip opened at Rs 1,102 and has touched a high and low of Rs 1,110 and Rs 1,067, respectively, in trade. Sensex was down 0.51 per cent at 24,774.41.
Later, HDFC shares settled 2.58 per cent down at Rs 1072.65.
In a BSE filing, HDFC said, “With the objective of further strengthening the balance sheet, the corporation believes that it will be prudent to utilise a part of the exceptional gains to build an additional buffer against any unexpected risk in the future.”
HDFC further said that this special provision is being done voluntarily and not on account of any regulatory requirement and that the provision is on standard assets. The company said it holds adequate security in respect of all loans.