Private sector lender HDFC Bank remains upbeat about consumption demand despite concerns over a slowdown and has defended its decision to revoke security in order to safeguard its exposure to Altico Capital.

“In my view, specific security is specific to the bank. That is the basis of the loan, that is commercial practice and that is the global practice,” Aditya Puri, Managing Director and CEO, HDFC Bank, told reporters on Monday.

State Bank of India Chairman Rajnish Kumar had on September 14 slammed a private sector lender for acting in a “selfish” manner and triggering the crisis at Altico Capital, which could also have wider implications for the financial system.

Puri, however, did not comment on the SBI chief’s statement. “Rajnish Kumar is a seasoned banker, a good friend and we are a democracy,” he said.

Real estate-focussed NBFC Altico Capital had last month said it had defaulted on interest payment of ₹19.97 crore on the external commercial borrowing (ECB) it had raised from Mashreqbank.

According to reports, HDFC Bank had encashed the fixed deposit quickly after the crisis broke out.

Panel to search for CEO

Meanwhile, Puri also said that a search panel of the board announced earlier will be formed by January 2020 to appoint a new Managing Director and CEO. This will ensure that Puri’s successor gets to work with him for one to two months.

Puri, who has been associated with HDFC Bank since 1994, will retire in October 2020 on attaining the age of 70.

The private sector lender has also launched a three-month long financial services campaign called Festive Treats to offer discounts on over 1,000 brands and special banking facilities.

Puri emphasised that there has been no stress in the bank’s credit portfolio.

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