NPLs will come down once normalcy returns, says HDFC's Keki Mistry

Keki Mistry, CEO of HDFC, on Tuesday said that the company's non-performing loans (NPLs) would come down as normalcy returns, after the firm reported a sharp deterioration in asset quality and sluggish loan growth.

“There are three-four new accounts, which we have classified as non-performing assets (NPAs) in this quarter, I don’t want to give any names. Out of that, there are two accounts which were not really NPLs – in the sense that they are not 90-day outstanding but we saw a lot of stress in those accounts and therefore we have voluntarily downgraded those accounts. So if you remove these two accounts and go strictly by the '90-day' definition, then the gross NPLs would have been 1.7 percent as opposed to 1.99 percent,” said Mistry.