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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The private sector bank’s no-holds-barred quest to bump up deposits (and cut back on credit) has only hurt its profitability and put off investors.
When HDFC Bank announced its January-March quarter results of the 2023-24 fiscal year, it seemed to have pulled off the unthinkable. It had managed to shave five percentage points off its dangerously high credit-to-deposit ratio, bringing it down from 110% to 105%.
The bank had capped credit growth to a mere 1.6% on a quarter-on-quarter basis, growing deposits at a decent 7.6%. A thrust on deposit growth (along with slowing loan sanctions) helped bring down the ratio of its total loans to deposits.
This, by any yardstick, is a job well done. Correcting the key indicator of its liquidity—and, by …
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
Divergent narratives from the Haryana government and the lender raise deeper questions on oversight, authorizations and systemic lapses—answers that may emerge only after a forensic audit.
The Bengaluru-based lender is once again gearing up to seek the RBI’s nod after the central bank returned its application last year.
