₹4,482 crore, of which 62% is one non-individual account. For the lender, developer loans have been a pain point and delinquencies here have risen steadily since the pandemic began last year.
Keki Mistry, chief executive officer of the company, said a further surge in bad loans from the developer book is unlikely. Of course, another potential covid wave may put pressure on the balance sheet.
Notwithstanding the rise in delinquencies, HDFC still shines when compared with peers, such as LIC Housing Finance Ltd, which reported gross bad loan ratio of 5.9%.
This is one reason for HDFC to command premium valuations. Another factor in support of the lender is its high provisioning levels.