Second COVID wave may hit retail asset quality: HDFC Bank

Impact to be highest on those who needed exemptions during first wave: MD

HDFC Bank expects the otherwise resilient retail segment to report a higher incidence of asset quality stress because of the second wave of COVID-19 infections. Borrowers who had to avail cover under regulatory exemptions such as moratorium and restructuring after the first wave will be the highest impacted, its CEO and MD Sashidhar Jagdishan said on an investor call. Terming the near-term expectations as ‘tepid’ and making it clear that the bank would be ‘cautious’ in these extraordinary times, Mr. Jagdishan said, “[For the] first time in so many years, we may not have any grip on what is going to happen”.