Though it has sought approval of the shareholders to raise up to ₹10,000 crore at the Annual General Meeting, HDFC Bank may raise capital according to its requirement, said Aditya Puri, CEO and MD.
“It is an enabling resolution. The question is whether we will start (raising capital) or not…I don’t know right now. We don’t need capital at this point in time.
“But if more guidelines come in on the Basel III framework and if we see a change in the overall growth rate, then we may raise capital,” Puri said on the sidelines of the Bank’s 20th AGM.
HDFC Bank’s capital adequacy ratio in FY14 was at 18.4 per cent as compared to the RBI’s requirement of 9 per cent.
The bank, which is India’s second largest private sector bank, is planning a capital expenditure of ₹600 crore as it intends to open 300-400 branches and ATMs in FY15, Puri said at the AGM.
On the human resource front, without disclosing hiring plans, Puri told shareholders that the bank’s staff attrition rate at present was between 15 and 17 per cent and it is at “lower levels and now acceptable”. The attrition rate had been at about 20 per cent last year.
Foreign shareholdingThe bank is also awaiting the Finance Ministry’s approval to raise its foreign shareholding limit which had reached the 74 per cent limit. However, due to certain ambiguities, the final decision on the bank's proposal to raise the limit has been put on hold by the Foreign Investment Promotion Board.
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