• NIFTY 11,588.35  (-0.63% )  
  • SENSEX 38,963.84  (-0.85%)  
  • USDINR 70.99  (-0.31%)  
  • GOLD 37,895.00  (0.01%)
  •  
  • Go
News
  •         News Details
HDFC Bank
(11:07, 15 Jul 2019)
HDFC Bank held its AGM in Mumbai on 12 July 2019.

Chairperson Shyamala Gopinath and Aditya Puri CEO of the Bank addressed the meet.

Highlights:

With respect to the tenure of the current Managing Director ending in October 2020, the board is working on identifying successor.

The bank's Nomination and Remuneration Committee (NRC) also oversees matters of succession planning of its directors, senior management, and key executives.

The NRC will constitute a search committee to undertake a global search of both internal and external candidates.

It will ensure that it is done in a manner that will allow appropriate time for an effective transition of responsibilities.

The CEO Aditya Puri said that if someone has to be trained for a year for his replacement he would not like to have that person. At best someone capable should be able to catch up with the responsibilities in 15 days.

Knowledge of economy, technology and digital drive would be among the top requisites of a new CEO.

The bank has started searching for his replacement globally. They are also looking at both internal and external candidates.

Due to good strong financial performance and sound asset quality, its share price has grown steadily over the past several years.

The bank will split share from one equity share of face value of Rs 2 each to two shares of face value Rs 1 each. Stock split will make the share more affordable to the retail and individual investors

It had last split its shares in 2011 in a ratio of 1:5.

The bank has no exposure to the large stressed accounts IL&FS, Cox and Kings and Jet Airways.

The bank has almost marginal or no exposures to accounts like DHFL, and Essel Group.

NPA cycle now seems to be bottoming out.

Currently there seems to be excessive pessimism about the Indian economy because the growth went down in one quarter. However, the growth prospects look good.

The government is focused on reviving the rural economy. Schemes like Pradhan Mantri Kisan Samman Nidhi are likely to help boost consumption going forward.

Mudra loans are being pushed by the bank with credit restraint.

In FY 2019 Net Interest Income grew 20.3% to Rs 48,243.2 crore. Net profit grew 20.5% to Rs 21,078.1 crore.

Core net interest margin remained stable at 4.3% in FY 2019.

Gross NPAs stood at 1.36% which was among the lowest in the banking industry.

The bank has successfully controlled NPAs with its prudent credit evaluation of the targeted customer profile and diversified loan book spread across customer segments, products, and sectors.

It has not reappointed SR Batliboi after RBI press release stating they won't approve such appointments.

The bank raised Rs 23,715.9 crore in FY 2019 which resulted in a strengthening of its capital. It also increased solvency and increased Capital Adequacy Ratio.

To avail of the looming market opportunities, the Bank is ready up for the next phase of growth on the strength it enjoys in each of its major businesses.

The bank is looking at growing organically. There are no plans of any merger or acquisitions as of now.

The Government and the RBI have taken several measures to infuse liquidity in the NBFC sector. There are plans in place to bring in stability in the NBFC sector.

The bank detected 5,484 frauds worth Rs 498 crore in FY19.

The contribution of overseas HDFC Bank branches is 2%. The Bank is not particularly focused on the foreign economies because those economies are in a lot of problems. All the banks that went abroad aggressively have come back after getting hurt.

HDFC Bank will open around 600-800 branches every year. Not all branches will be traditional looking branches. Digital and physical (branches) will continue to co-exist while the nature of branches will change depending upon customer needs.

Momentum seen in the construction sector due to government's focus on low-cost housing and key infrastructure projects is likely to continue.

The bank feels that normal monsoon, recovery in private investment and traction in private consumption will help the economy.

In FY 2020 headline inflation is likely to remain controlled.

Any sharp increase in crude oil prices will increase inflation, fiscal deficit and the current account deficit.

As on March 2019 CAR as per Basel III was 17.1% against the a minimum regulatory requirement of 11.025%.

Due to the disruption caused by companies like Google and Amazon in the payments space, HDFC Bank is trying to make user interface as good as possible.

Powered by Capital Market - Live News