₹436 crore. That does not mean the mortgage lender is sitting on less insurance against risks. HDFC has ₹1200 crore specifically towards covid-19 and rising collections efficiencies indicate that it would suffice.
The lender seems to have seen stronger recovery from the pandemic’s blow than it had anticipated before. Indeed, back in July chief executive officer Keki Mistry had said that collection efficiencies may reach pre-covid levels by January 2021.
However, collections have already improved vastly by September. It also means that HDFC would be able to keep its historic gross bad loan ratios intact.
For the September quarter, the lender’s gross bad loans were 1.81% of total loans taking into account the standstill on bad loan.