Money & Banking

HDFC Bank will return funds debited from Altico’s account: Aditya Puri

Our Bureau Mumbai | Updated on July 18, 2020

9% borrowers in value terms under moratorium

HDFC Bank has been asked by the RBI to return ₹210 crore it had taken from Altico’s account. This was confirmed by the lender’s Managing Director and CEO Aditya Puri at the annual general meeting on Saturday.

“We had appropriated the money based on sound legal advice, and now that the RBI has asked us to return it, we will be returning it,” he said.

HDFC Bank, which had lent money to NBFC Altico, had debited ₹210 crore from its account last year. Altico had raised the money through ECB from Dubai-based Mashreq Bank, which had been deposited in its HDFC Bank account. The two had then approached RBI on the issue.

Meanwhile, Puri who addressed the AGM for the final time before his term at the bank comes to an end in October, also cleared the air on succession plans and said his successor has been with the private sector lender for the last 25 years.

“My successor was always there, at least in my mind. It is now for RBI to decide,” he said.

The bank had, in April this year, announced that its board had finalised a list of three candidates for the post of MD and CEO and it would be submitted to the RBI in order for preference to make the final decision.


Meanwhile, Sashidhar Jagdishan, Group head, HDFC Bank said a lot of people who took the moratorium in the first phase have paid off their dues while some have rolled it over. The number of borrowers who have availed the moratorium has come down between the first and the second phase.

“As on June 30, 2020, there are nine per cent of customers by value and in number who have opted for moratorium,” he said.

Meanwhile, the bank stressed that there have not been any layoffs and there has only been natural attrition.

Commenting on recent high level exits, Puri said that Munish Mittal, Chief Information officer, Abhay Aima, Group head, Private Banking and Ashok Khanna, Group head, automobile loans have left. Puri said Aima’s exit was amicable and Mittal has left to study abroad at Oxford.

He also confirmed that the bank conducted an inquiry into vehicle loans and appropriate action was taken against employees involved in the misconduct.

Published on July 18, 2020

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