Aditya Puri calls for rate cut
He also said that the government should not be concerned about fiscal deficit in the current circumstances
- Published 24.03.20, 1:35 AM
- Updated 24.03.20, 1:35 AM
- a min read
Aditya Puri, one of the country’s top bankers, on Monday called upon the Reserve Bank of India (RBI) to go for an inter-policy rate cut and relaxation on its rules relating to asset classification.
Speaking to newspersons at a conference call, the HDFC Bank managing director, who did not rule out a fiscal stimulus, also said that the government should not be concerned about fiscal deficit in the current circumstances.
The HDFC Bank stock has been one of the most battered since concerns grew about the economic impact of the coronavirus outbreak. On the BSE, the share crashed more than 12 per cent to close at Rs 770.50.
Investors have been staying away from banking stocks on fears that the drop in economic activity would lead to a rise in non-performing assets (NPAs) at banks.
On the current crisis, Puri said it was more of a biological than a financial one. He added that the bank’s asset quality was strong with more than 70 per cent of its personal loans being given to salaried customers and a large part of its SME customers are those who have self-funding of around 65 per cent.