HDFC Bank bad loan ratio may widen to decade high, says CEO-designate

The bad-loan ratio might widen to 1.4% to 2%, which will be close to the highest level since the global financial crisis, Sashidhar Jagdishan said in a conference call with analysts on Friday

Country’s largest private lender HDFC Bank’s gross bad-loan ratio might widen on slippages from loans in moratorium, its Chief Executive Officer - designate Sashidhar Jagdishan said.

The bad-loan ratio might widen to 1.4 per cent to 2 per cent, which will be close to the highest level since the global financial crisis, Jagdishan said in a conference call with analysts on Friday. Jagdishan will takesover charge as MD & CEO from Aditya Puri on October 27, 2020.

The bank’s Gross Non-performing Assets (GNPAs) - bad loan ratio -- was at 1.36% at end of June as against 1.4 per cent