Mumbai: HDFC Bank, which reported RS 10,342 Crore’s net profit record for the quarter that ended December 2021, has said that most of the borrowers who utilize Covid restructuring tend to pay loans in time, while 10-20 basis points (100bps = 1 percentage point) from Their loans can enter the default.
Overcoming analyst calls after the results on Saturday, Chief Financial Officer Srinivasan Vaidyanathan said that bank loans were restructured under the RBI framework for Covid, at the end of December, established on loans of 137bps.
“It is at the borrower level and includes 28bps from other facilities of the same borrower, which is not restructured but included here.
From restructured accounts, 40% guaranteed with good collateral.
Approximately, two-thirds are salary customers and around 40% Have a Cibil score above 700, “Vaidyanathan said.
According to published numbers, the bank has restructured RS 14,564 private loan, RS 1,566 Crore Business Loans and Rs 1,889 Crore loans for small businesses under the RBI resolution framework – 2, May 5, 2021.
“Covid restructuring has been enabler for our customers to restless For uncertainty in the last few quarters.
The initial indicator shows that most of these customers are now in positions to continue their payments with minimal impact on the overall quality of progress, “he added.
Vaidyanathan said the impact of restructuring in the number of gross non-performance assets (NPA) will be 10-20bps in certain quarters.
Banks report an increase in profit with loans and deposits that grow at a much faster level than the banking system.
“We have part of more than 25% (loans) based on incremental,” Vaidyanathan said.
Emkay Research said in a report that the collection of loans restructured by the Bank was moderated by the RS 2,800 Crore to Rs 17,500 Crore (1.4%) loans from 1.7% of loans in Q2FY22, where almost half of the reduction was caused by restructured loans to the NPA at Q3FY22.
As a wise strategy, the Bank made an additional 900 crore provisions in Q3, and now carrying a contingent plus floating buffer of Rs 10,100 Crore (0.8% loan).
The Bank margin also gets a boost with an increase in low-cost current account deposits and savings (CASA).
Like opposing overall deposits, which grew 13.8%, the Casa deposit grew by 24.6% with savings account deposits at Rs 4,71,029 Crore and the transaction deposits running at Rs 2,10,195 Crore.
Time deposits are at RS 7,64,693 Crore – 5.6% increase in the quarter according to the previous year, which resulted in CASA deposits consisting of 47.1% of the total deposits on December 31, 2021.
Most Recast Loans on Track: HDFC Bank
