HDFC bank 26th AGM
Article published as on Saturday, 18th
July, 2020 at 8:00 p.m.
Saturday
18th July, 2020, 2:00 p.m.
Here are
links to some important documents.
Annual
report FY 19-20
Quarterly
result Q1 FY21
Quarterly
performance was as usually good with consistent 20% rise in profit this time as
well.
Coming to
AGM proceedings, it was chaired by Shyamala Gopinath she highlighted key points
of performance relating to NPA, operations, margins.
She also
expressed her sorrow on not declaring dividend this year as RBI policy forbids
dividend distribution to conserve capital at these tough times.
At the
end of her speech she thanked current MD Aditya Puri and there was a round of applause
for the soon retiring MD Aditya Puri.
Answers and Key insights given by
the managing director Aditya Puri.
Answer to 3 question which have
been going round and round by the media.
·
Some kind of unexpected departure because I am
departing, this is absolutely ridiculous,
(He gave
names of some managerial personnel’s and clarified this thing, and ensured that
replacements of these managerial personnel’s were made.)
·
What was the kind of misconduct done in auto loan
section: internal enquiry was done in this matter based on the whistle blower complains,
and based of internal findings appropriate disciplinary action has been taken against
the involved employees for the act of personal misconduct.
·
The news in the newspaper regarding the company
being asked by RBI to return 200 crores back to the company , where we will
come pari passu with the rest of the lenders and we will get back our money.
We appropriated
money on the basis of legal advice, sound legal advice, however regulator has
directed us to return back the money and we will go ahead with it.
(Matter
relating to Altico NBFC)
What happened and how are we able to achieve
the result which we show during this extreme period. ?
How are you improving asset quality? How are
you maintain health of your people?
The economy has been improving
from its April turf, there has been too much pessimism around certain high frequency
indications such as electricity consumption, toll way collections ,e-way bills,
purchaser managers index marked improvement in May and sustained in June,
anecdotal evidence on capacity utilization of some companies such as Auto,
steel, FMCG , pick up in sales of 2 wheelers and robust growth in FMCG,
indicates healthy rural sector, also due to good crop season has led to income
in the hands of rural India, this points to good recovery subject to
moderation's.
115 basis point cut in February and
650,000 crore liquidity has caused drop in govt bond yields, but we will be
able to absorb most of it.
We expect 25 to 50 basis points
of rate cut further.
During this quarter we had customer
interaction of an average 2.25 lakhs per day, this is what helped achieve this quarter’s
result.
(Aditya Puri also highlighted steps taken by banks to acquire and engage
customers digitally, also mentioned that HDFC bank is in top 5 digital bank in
World, also he mentioned about virtual relationship manager teams.
He also
shared about the concert A.R. Rahman did for the bank free of cost as he stated
look I will do the work because you do good work and you are a good citizen. I googled
the it and here is the
link )
Payment
business which we want to dominate, Strong traction was seen in
categories such as daily essentials, medical expenses, home deliveries, I am
going into these details as there is too much pessimism around. Corona ayega corona jaega hum log rahenge.
Collection: this is
why we haven’t laid of any employees, we remain fully equipped for the September,
even sales people were not laid off, as we have spent resources training you, help
us in collections and the sales will be back.
Capital adequacy is 18.5% due to
great management of
Also the provisions coverage (specific+
contingent+ covid) is 140%,
Which made standard and poor to
say, if there was not a restriction in sovereign bonds rating, you would be
rated 2 levels above. And according to them there was very little they could
see that could cause a downgrade, so we are one of the safest bank available to
you anywhere.
There Is No
other bank in the horizon which offers the product range or the technology or
the distribution as ours.
Target of becoming a financial
offering company from a banking company.
Aditya puri addressed the
concerns raised to NPA’s saying they have preponed the NPA’s provisioning and
there is nothing to worry.
Also regarding successors list
which is given to RBI, those are who are with us for 25 years +
So is my succession a problem ~
No
Is rural a problem ~ No
Are my employees happy ~ yes!
Are we indulging in unethical practices
~ absolutely not!
Could these be vicious rumours ~ I
don’t want to comment on that.
Is the future clear ~ yes!
Will we gain market share ~
absolutely
We continue to believe with our
HDFC bank family team, and our strategy and our action plan which is already on
the ground. The future is bright and the best is yet to come ~ Aditya Puri.
(Other queries related to figures
such as branches, employees and NPA’s were answered by Shashi.)
My
understanding: HDFC bank has time and again proven its
performance and again today the results were good.
The management is
professional and many speakers thanked secretarial team for helping them in
investor related queries. Most of the questions and concerns were addressed,
some queries such as question on listing of HDB financial were not addressed.
Not going by the commentary of
management and just looking at numbers and financials one may think that this
bank looks overvalued compared to its peers.
What differentiates HDFC bank
with other banks and earns higher valuations is its good management.
Here is
the list of speakers.
Dinesh kumar
modi-
H. S.
Patel-
Anil kumar:
Asit mody
Aloyshious
:
Mr.
desania
Gautam Tiwari
Homayun &
Beruz Pouredehi
Ravi narady
Nirupama shah
Asha lata
maheshwari
Sri shyam
sundar
Parth parekh
Dipankar
Santosh kumar
saraf
Jaideep
bakshi
Anil champaklal
parekh
Bharat shah
Adil Virani
Vasanti Shetty
Shobna Mehta
Vinayak
Deep janak
P. shyam
sundari
Stock
code: 500180 price:
1099.15
Stock
name HDFC BANK EPS: 47.83
Market
cap: 6,
03,463.97 (cr.) P/E: 22.98
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