CNBC broke that news a couple of news back but suely it is good that the uncertainity of these transactions are sorted out this quarter so that markets can look ahead.

HDFC Bank's provisioning for losses under loans up

Private sector lender HDFC Bank today said its provisioning for losses under loans has increased as the proportion of personal advances has gone up. Speaking at the annual general meeting here today, bank Chairman Jagdish Capoor said the proportion of personal loans given by the bank has increased and so the provision for the losses has also gone up , he said. "The possibility of NPAs in personal loans is higher but the interest rate charged on personal loans is also higher and the bank will get more yield on these loans," he said.

The bank, which has a balance sheet size of Rs 1,35,000 crore and growing its business at about 40 per cent year-on year, expects to keep the momentum going though the Capoor said he would not like to make a forward-looking statement. Responding to a query on possible growth by the bank this year, the chairman said, "Our past record can be looked at."

Capoor said the bank will be increasing its footprint as the it is expecting to get the Reserve Bank approval to open about 200 more branches in the current year. The bank, which has recently taken over the Centurian Bank of Punjab, has about 1,170 branches. It takes about 18 months for a new bank branch to break-even, he said.

Referring to a shareholders' query as to what the bank was planning to do to arrest the recent fall in its share price, he said the bank does not have any plans to take artificial measures like buyback of shares nor is it planning any bonus issue or split in the par value of the share.

Source: ET