HDFC Bank Limited cuts FY22 growth projection to 10% from 11.5%
HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai, Maharashtra. While HDFC Bank is India’s largest private sector bank by assets and by market capitalization as of April 2021. It is the third-largest company by market capitalization on the Indian stock exchanges.
While in March 2020, HDFC made an investment of Rs. 1,000 crores in Yes bank. As per the scheme of reconstruction of Yes Bank, 75% of the total investment by the corporation would be locked in of the total investment.
HDFC Bank has cut India’s growth projection to 10 percent from 11.5 percent for the current financial year, specify the adverse effect of the second Covid-19 wave.
Moreover, in the worst-case scenario, growth could be further lower at 8 percent, it said in a report, It is possible that the infection and fatality curve will peak within the next few weeks and epidemiologists are not ruling out a possibility of a decline that is just as sharp as the rise, the report said.
While it sought for keeping industry open to limit the economic impact of the second wave. But raising concerns over the health of the workforce as higher infection rates are likely to affect the availability and productivity of labor. We also flag the risk to our farm output (beginning with Kharif sowing) if, as anecdotal evidence suggests. The virus is spreading to rural areas, Abheek Barua, the bank’s chief economist, said.
Experience of other nations grappling with the second wave of infections has shown that wider lockdowns. Coupled with aggressive vaccination programs proved to be effective in containing the spread. A full-scale lockdown strategy might become imperative for states that have relatively weak health. Infrastructure such as UP and grapple with the Covid-19 wave, the report said.