HDFC Bank is about 20 bps away from upper limit of 10-yr average NPA ratio

Three quarters back, when HDFC Bank’s gross non-performing asset (NPA) ratio climbed over a per cent, the hope was that it would only be a one-off blip. But, the bank hasn’t been able to regain its sub one per cent level since then. Provisioning and gross NPA ratios have only been climbing up sequentially and the December quarter (Q3) results were no exception. 

The focus this quarter was on the outcome of the Reserve Bank of India’s audit observation on HDFC Bank’s bad loans. According to the audit report, a divergence in gross NPA of Rs 20.5 billion was reported