In a first-of-its-kind recognition for an Indian corporate leader, Aditya Puri, MD, HDFC Bank was conferred the Lifetime Achievement Award by Euromoney Awards of Excellence 2020. The publication has recognised the iconic leader for his skills in building a world-class Indian bank at a time where there were no similar institutions in existence.
The coveted honour from the global financial magazine in recognition of his illustrious career
in banking comes just ahead of his retirement next month.
In its editorial, the magazine writes, “Aditya Puri’s success since building HDFC Bank in 1994 can be measured, in part, by the quality of its absences: the absence of scandal, the absence of any credit bust and the absence of drama. Indian banking generally is not short of any of these things, lurching between dismal creditor catastrophes amid cycles of bailouts and occasional fraud-related arrests, but HDFC Bank has done nothing but grow.”
“I take this opportunity to acknowledge the contribution of all our stakeholders who have been with us in this journey,” said Aditya Puri. “I humbly accept this recognition on behalf of each one of them. And the journey wouldn’t have been as good without the support of one and all who have been a part of this.”
The awards are a rich recognition of Mr. Puri’s contribution to the following:
• Unremitting focus on the customer,
• Creating value for all stakeholders,
• Giving back to society and
• All the above helping him create a highly respected and trustworthy brand.
Euromoney further writes, “It has avoided the low-hanging fruit of lucrative but perilous lending to unsteady conglomerates, letting others take the short-term spoils and the longterm consequences, but while doing so it has somehow grown to be the biggest bank by market capitalization in the country, twice the size of the State Bank of India. By 2012 investors were so enamoured with the bank that it had the highest price-to-book ratio, not just in India but the world.”
What is also remarkable is that throughout this journey, the Bank has stayed true to its core values of customer focus, operational excellence, product leadership, people, and sustainability
2020|DHANBAD, INDIA – To meet the growing demand and popularity for its range of Jawa motorcycles in India, Classic Legends Pvt. Ltd. is all set to expand its retail footprint across the country. Beginning a new round of dealership inaugurations, the company announced its new Jawa Motorcycles showroom in Dhanbad, Jharkhand.
Since the launch of the brand in November 2018, Classic Legends has worked extensively to register a nationwide presence with a strong dealer network across the length and breadth of the country. The company established 100 dealerships in the first phase in a record time of 100 days, a remarkable achievement for any automobile manufacturer in the country.
The further network expansion marks the brand’s intentions of making inroads into more cities across India to get closer to Jawa aficionados, offering more touchpoints for them to experience the Jawa life.
This new outlet in Dhanbad takes the total count of Jawa dealerships in the country to 106across India, with many more slated to start operations in the coming few months. This new dealership establishes the brand’s presence in three cities in the state, after Ranchi and Jamshedpur.
The new showroom is open at the following location:
• SATNAM INC., B P AGARWALLA BUILDING, POST DHANSAR, P.S. BANK MORE, DHANBAD – 828106 Classic Legends has resumed operations across its entire existing dealership network following safety protocols as prescribed by national and local authorities, as lockdown is relaxed in the country. With the Perak deliveries, the existing network has opened with a renewed vigour. The network expansion strengthens the brand’s commitment of standing by its customers and offering them an unparalleled ownership experience.
The Jawa dealership concept
The Jawa dealership is a place to make connections with yourself, with like-minded people and with the motorcycles. Its design philosophy is rooted in authenticity, and the ability to bridge the past and the present through its stories and motorcycles. It is a biker café ambience which tells the tale of the legend that Jawa is.
Space captures the nostalgia of a golden era which celebrated honesty of materials & craftsmanship through its dark polished wood fixtures, subtle inlays, raw textures and vintage oxblood upholsteries. At the same time, the motorcycles infuse a contemporariness in the showroom with their modern interpretation of classic design, loaded with the latest in engine technology and features. The various elements have been designed to present the contemporary classic Jawa motorcycles amidst a visual narrative layer of legendary stories and monochrome lifestyle imagery. Whether it is the large community table setting for free-flowing conversations, the carefully curated bookshelf for the curious reader, or the Classic Rock in the background for the music lover; space makes everyone feel easy, whether a hard-core motorcyclist or a millennial looking to immerse into the world of motorcycling.
Range of Jawa Motorcycles
Classic Legends Pvt. Ltd. recently began the deliveries of Jawa Perak, its flagship model across the country. Perak has been one of the most anticipated motorcycles of 2020. It is a motorcycle reminiscing the past, yet far ahead of its time. Designed and developed as a factory custom embodying the spirit of ‘Stealth, Vigilante and Dark’, the BSVI compliant machine is a true bobber in spirit and form with ‘bobbed’ fenders, chopped exhaust and a floating seat. India’s first Factory Custom is powered by a 334cc liquid-cooled, single-cylinder, four-stroke, DOHC engine, producing 30.64 PS of power and 32.74 Nm of torque, breathing out through signature twin Jawa exhausts chopped for the authentic bobber stance.
Sharing the showroom floor with the Jawa Perak are the recently introduced BSVI variants of Jawa and Jawa forty-two with a host of enhancements that are aimed at making the riding experience of the modern classics a whole lot better. The biggest change comes in the mechanical front. Both Jawa and Jawa forty-two continue to sport the 293cc, liquid-cooled, single-cylinder, DOHC engine, but it now features India’s first cross port technology that increases the volumetric efficiency of the engine by enabling better flow of charge and exhaust gases, thus improving power and torque output. This engine is the world’s first single-cylinder engine that uses the cross-port configuration and develops similar power and torque to the BS4 configuration to offer the same superior riding experience to the customer. This tech also helps the motorcycles retain their characteristic twin exhaust identity and meet the stricter BS-VI emission standards while retaining similar power and torque numbers.
The seat has been reengineered with a new seat pan as well as cushioning translating to more comfort over longer rides. In the cosmetic department, the chrome plating now comes with the backing of rigorous testing rated at two and a half times the industry standard. Both Jawa models continue to sport best in class braking systems equipped with (single & dual channel) ABS by Continental, offering shortest braking distance and best control among its competitors. In addition, there have been a host of changes under the skin right from the tone of the horn to a slicker gearshift.
To help bikers give in to temptation more easily, the Jawa Perak is also available with a range of easy finance options. Each Finance Options on offer across Jawa dealerships has something unique. A few highlights are:
• 50% off on first 3 EMIs • Special EMI plan @ Rs. 6,666/month • EMI plans as low as Rs. 8,000 @ 2years and Rs. 6,000 @ 3years • 100% funding | Zero down payment | No income proof required. (T&C apply) Classic Legends Pvt Ltd also announced an industry-first motorcycle exchange program across all its dealerships through Mahindra First Choice Wheels – India’s No. 1 pre-owned vehicle brand. This will allow interested customers to walk into the dealership with any old bike and get it exchanged for a brand new Jawa.
The company will also be offering the largest number of financial tie-ups with best in class finance schemes for its customers. The list of financial partners includes HDFC Bank, Tata Capital, ICICI Bank, Mahindra Finance, Capital First (now IDFC Bank), L&T Finance Limited and Hinduja Leyland Finance at the national level in addition to regional partners.
Model wise prices:
Colour
Price of Single ABS BS VI (Ex-Showroom, Jharkhand)
HDFC Bank Ltd. today announced the launch of a 1st-of-its-kind product for the armed forces. Called “Shaurya KGC Card”, this unique product comes with never-seen-before features and eligibility criteria specially crafted for our over 45 lakh Indian armed forces personnel.
The product is based on the Kisan Credit Card guidelines by the government.
The key benefits are as follows:
# Life cover of Rs 10 lakh as against Rs 2 lakh for an average card
# Simple and easy documentation that doesn’t require the personnel’s physical presence to accommodate the nature of his job and his availability
The new product was launched digitally from Mumbai by Mr. Aditya Puri, Managing Director, HDFC Bank in the presence of Mr. Rajinder Babbar, Business Head, Rural Banking Group, HDFC Bank on the eve of India’s 74th Independence Day.
Speaking at the launch, Mr. Puri said, “It’s an absolute honour to launch this product for the armed forces and their families. Coming from an Air Force family, I have seen from close quarters the sacrifices they make and hardships they go through – the personnel on duty and their families back home. I feel like my career is complete now that we’re able to do something for them. With this, we have an equally good product for armed forces brethren as we have for farmers. This is our Independence Day gift to our protectors. Jai Jawan, Jai Kisan, Jai Hind.”
To view the launch video: //www.youtube.com/watch?v=D2wJkVQMg7I&feature=youtu.be
The Shaurya KGC Card will provide armed forces personnel with finance for agricultural requirements like production of the crop, post-harvest maintenance and consumption needs. They can also avail of this funding to purchase farm machinery, irrigation equipment or construct storage structures etc.
The loan facility has been designed keeping in mind the financial needs of the armed forces and can be availed by:
1. Visiting HDFC Bank Branches
2. Applying for the loan through recently launched HDFC Bank e-Kisan Dhan app
3. By dialling an all India Interactive Voice Response (IVR) toll-free number (1800 120 9655).
All branches of the armed forces including those who serve in Army, Navy and Air Force, as well as Para Military Forces.
This activity is part of the Bank’s ‘Har Gaon Hamara’ initiative to provide banking facilities to customers in the rural and under-served areas of the country.
The Bank has already disbursed over five lakh agri-loans and has set up 12 Krishi Dhan Vikas Kendras across India, which has enabled farmers to avail facilities like soil testing and access the latest information on the best farming practices.
Mumbai, August 09, 2020: HDFC Bank has been recognised as the ‘Best Bank in India’ by global magazine FinanceAsia for the 4th consecutive year. The Bank was adjudged as India’s top bank at the publication’s Country Awards for Achievement 2020 for its conservative retail lending policies and security of deposits.
In its editorial on the bank, FinanceAsia states, “It feels like a secure home for depositors aware of rising levels of fraud cases across the wider financial services sector. The bank’s conservative retail lending policies also means that financial analysts believe it will be able to navigate through the COVID-19 storm that put the country under a strict curfew.”
In its latest issue, the magazine writes – “HDFC Bank’s hold on this award has only strengthened during the awards period. As many financial analysts have noted, India’s most profitable private sector bank has become a safe port in very stormy seas for an Indian economy beset by slowing growth and a banking sector weighed down by bad loans. This safety-first ethos is reflected in the bank’s capital and NPL ratios. S&P data shows an overall CAR of 18.25% for FY 2020 compared to 16.77% the year before, of which core tier 1 amounted to 17.01%.”
Methodology:
FinanceAsia’s annual Country Awards for Achievement recognises outperforming banks from countries in the Asia-Pacific region. The magazine bestows the recognition on the banks after taking into consideration their performance, vision, and long-term strategy.
For the second year running, a high-profile editorial advisory board also aided the editors by providing a peer review across the region.
In line with our expectations, the RBI kept its repo rate on hold at 4%, citing the uncertainty around both inflation and growth as the reason behind this “wait and watch” approach. The policy corridor was also kept unchanged, with the reverse repo at 3.35% and the MSF rate at 4.25%.
RBI stance: The RBI continued to keep its policy stance as accommodative and mentioned that supporting economic recovery assumes primacy in the conduct of monetary policy.
More rate cuts ahead? In terms of forward guidance, the RBI highlighted that while there is still space for further rate cuts, it would like to use this space more “judiciously” when its most effective. Depending on the inflation trajectory, we see room for further rate cuts – between 25 to 50bps- in H2 FY21. Bottom-line: RBI is likely to use the limited space available for rate cuts prudently and wait and watch for further clarity on growth and inflation before cutting again.
Growth and Inflation Expectation: The central bank refrained from announcing specific forecasts for growth and inflation for the year. However, it said that it expects GDP growth to contract in FY21 and inflation prints to remain elevated in Q2 FY21 before moderating in H2 FY21. Going forward, the RBI remained cautious over the upside risks for inflation, including – protein-based food inflation, cost-push pressures due to high fuel pump prices, and any disruption in supply leading to higher food inflation.
Regulatory changes: The more important announcement today was the resolution framework for COVID- 19 related stressed borrowers. The RBI introduced a special restructuring window under the earlier “Prudential Framework of Stressed Assets” (June 2019) for corporate and personal loans, subject to specified conditions and safeguards. The details of the same are still awaited. Furthermore, the RBI also extended the restructuring framework for MSME debt, already in place, for MSMEs that have been hit by the pandemic.
The disappointment: The RBI did not announce any changes to the current HTM limit at 19.5% for banks. As highlighted in our recent report (Monetary Policy Preview, 4 August 2020), in the absence of an increase in the HTM limits, the pressure on the RBI to conduct a larger quantum of OMOs is likely to rise. This could be challenging with the existing liquidity surplus at over INR6trn (as of July-end). What this essentially means is that the pressure at the long-end of the yield curve could rise.
Bond View: The 10 year 05.79% yield (introduced in May 2020) and the new 10-year 05.77% inched up by 3-4bps post the policy announcement. We expect yields to remain range-bound in the near term, with a slight upward bias. Although, any significant upside is likely to be capped by yield management tools like Operation Twists conducted by the RBI. Over the medium term, the outlook remains uncertain and is likely to be influenced by any announcement (or the absence of) around OMOs or raising HTM limits. The Specifics:
Key regulatory measures announced:
1. Resolution framework for COVID related stress: A window will be provided under the Prudential Framework (introduced in June 2019) to enable lenders to implement a resolution plan without a change in ownership for corporate and personal loans.
o Borrower accounts that were classified as standard for more than 30 days with the lenders as on March 1, 2020, will be eligible
o Lenders to keep additional provisions of 10% on the post-resolution debt
o Resolution plan may be invoked anytime till December 31, 2020
o RBI to constitute a committee under KV Kamath which will make recommendations on the required financial parameters and safeguards. 2. Restructuring of MSME debt: The RBI allowed stressed MSME borrowers to restructure debt if their loans classified as standard with the lender as on March 1, 2020. This restructuring shall be implemented by March 31, 2021. This is an extension of the already present restructuring framework for MSMEs that is in place as of January 1, 2020.3. Investments by banks in Debt Mutual Funds and Debt Exchange Traded funds (ETF): Currently, if a bank holds a debt instrument directly, it would have to allocate lower capital as compared to holding the same debt instrument through a Mutual Fund (MF)/ETF. It has now been decided to harmonise the differential treatment existing currently. This is likely to result in substantial capital savings for banks and is expected to give a boost to the bond market.4. Other announcements include: o Borrowing against gold jewellery: To increase the loan to value ratio (LTV) for loans against gold ornaments from 75% to 90%. This facility available till March 31, 2021. o Additional liquidity of INR 5000 cr. at repo rate to NABARD and INR 5000 cr. to National Housing Bank Inflation outlook: While the RBI refrained from giving a headline CPI inflation number, it highlighted that the headline inflation is likely to remain elevated in Q2 FY21 and moderate in H2 FY21 on account of a favourable base. The RBI noted that disruption in the supply chain has weighed on both food and non-food inflation. The RBI reckons that factors such as higher domestic pump prices on account of higher domestic taxes on petroleum products, cost-push factors, higher food prices, volatility in financial markets and rising asset prices could pose upside risks to the inflation outlook.o We expect headline CPI inflation to remain elevated in the near term, averaging 6.0% in Q2 on account of higher food prices and rise in core CPI (led by higher gold prices and some pent up in demand) and higher wages led by a shortage of labour. Looking at a broader time horizon, we expect CPI inflation to ease below 3% in Dec-20 supported by a statistical favourable base, contained food prices amidst healthy Kharif production and muted demand-side pressures that are likely to keep core CPI in check. On balance, we expect CPI inflation to average at 4.7% in FY21.Average headline CPI inflation (%YoY): HDFC Bank estimates Q1 Q2 Q3 Q4 6.5% 6.0% 3.6% 2.7% Growth Outlook: On the growth front, the RBI expects a healthy recovery in the rural economy supported by progress in Kharif sowing. The RBI expects a recovery in economic activity in Q3 and Q4 aided by gradual restoration of supply lines and some recovery in demand. For the full year, the RBI expects the growth to contract with downside risks emanating from deviations from the forecast in the case of sub-normal monsoon, global financial market volatility and a more protracted spread of the pandemic.o We expect growth to contract by 7.5% in FY21, with a sharper contraction in Q1 and Q2, and recover somewhat in H2 FY21.GDP Growth (%YoY): HDFC Bank estimatesQ1 Q2 Q3 Q4 -21% -11% 0.7% 1.5%Treasury Economic Research teamDisclaimer: This document has been prepared for your information only and does not constitute an offer/commitment to transact. Such an offer would be subject to contractual confirmations, satisfactory documentation and prevailing market conditions. Reasonable care has been taken to prepare this document. HDFC Bank and its employees do not accept any responsibility for action taken on the basis of this document.Abheek Barua Chief Economist Phone number: +91 (0) 124-4664305 Email ID: abheek.barua@hdfcbank.comSakshi Gupta Senior Economist Phone number: +91 (0) 124-4664338 Email ID: sakshi.gupta3@hdfcbank.com