HDFC Bank 2020 AGM Takeaways!

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“Corona Aayega, Corona Jayega, Hum log rahenge.”

  • Already seeing green shoots in the rural economy: Healthy income in their hands.
    • A part of the demand probably pent up & can face issues going forward.
  • The Bank has recorded improvement in key financial parameters.
  • Mr Aditya Puri’s last AGM, thanking him for his 25 years of brilliant service.
  • Opinion: Going to get a policy rate cut in the near term. (25-50 bps cut)
  • Nobody lost a job in HDFC Bank or HDB.
    • Onboarded salespeople & focused them on collections.
  • 1.2 million new liability relationships in Q1FY21 (80% of pre-COVID)
  • 95% of branches are operational.
    • Future Outlook for branches: From a banking storefront to a financial marketplace.
  • 70% of January levels in payments.
  • Wholesale lending is strong with lending to top corporates & buying bonds.
  • SME assets have fallen as demand is down.
  • Banking gives distribution to tech companies in India. 70% integrated to desired levels.
  • The strongest brand in India: HDFC Bank (In the global Top 100)
    • Clear future, will continue to gain market share.
  • NPAs will shoot up for some BFSI institutions, not for us.
    • $6B in liquidity, Investment returns have compensated.
  • Issues in News:
    • No departure from senior management due to Mr Puri’s departure.
      • Even gave out the exact personal reasons for some top executives departure.
    • The issue with Auto loans? Internal inquiries took place, Personal misconduct was found & appropriate actions were taken.
    • Are going to repay Rs 210 crs Altico as told by the regulator. ( whatever they did, was done with legal advice)
  • Credit costs will be less than after the Global Financial Crisis 2008 (2.5%)
  • Crossed 10,000+ crs in government credit schemes.
  • 9% of the total customers remain in the moratorium as of today.
  • Have 8000 crs of Tier 1 & 10000 crs of Tier 2 bonds.
  • Cost of virtual AGM: 3.5 lakhs.
  • Give Esops from the mid-level management (~800 people)
  • HDB Financial would see a dip in profits. HDFC securities is having a phenomenal run but as it’s losing market share, does have plans to target discount brokerages.
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You might be interested in: What makes HDFC Bank the bank it is today? And why is it a darling of all investor classes from FIIs to Retail investors?


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JST Investments is a Mumbai-based investment firm that believes in long-term wealth creation. It's a brainchild of Aditya Kondawar, Aditya Shah, and Anish Moonka.
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