Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,999.1059.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

How HDFC overcame the NBFC crisis

We held our ground by staying away from funding what we perceived were riskier assets, Deepak Parekh said.

, ET Bureau|
Updated: Jul 04, 2019, 06.37 AM IST
0Comments
BCCL
HDFC-BCCL-1200
Mumbai: Diversified funding, conservative risk appetite and years of experience has helped HDFC come through a challenging period in the last fiscal year, chairman Deepak Parekh said in his annual letter to the company's shareholders. He was referring to the liquidity challenges faced by NBFCs & housing finance companies in the second half of the last fiscal.

“We held our ground by consciously staying away from funding what we perceived were riskier assets. Unsurprisingly, in the second half of the year, we were asked what we did differently that enabled us to stay resilient and be the preferred choice in the flight to safety. Perhaps a combination of experience and adhering to our risk appetite held us in good stead,” Parekh told the company’s shareholders in his annual letter.

Parekh said that though the company did make a few wrong calls and underestimated some risks HDFC has tried to err on the side of caution particularly in the non-individual lending business.

Parekh expressed optimism that the Indian economy will tide over its short term challenges. “Several countries are in the midst of a political storm, while India has voted decisively for stability and continuity. This is a strong mark of confidence and India stands ready to welcome patient capital seeking to earn attractive returns to fund its growth ambitions,” he said.

Also Read

Stocks like HDFC Bank, ICICI Bank & HDFC looking good

HDFC Childrens Gift Fund

HDFC Ultra Short Term Fund

HDFC Banking and PSU Debt Fund

HDFC Bank cuts MCLR by up to 10 bps

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service