Is HDFC bank safe?
- Asked By
- Updated On:23-May-2023
- Replies:1
Short Answer
HDFC bank is undoubtedly a safe bank in India. The bank is India's largest private bank in terms of market capitalization and has also been ranked India's No. 1 bank in Forbes' World's Best Bank Report.
Detailed Answer
Recently, there have been several banking-related scams in India that have shaken our banking and financial system. Nowadays, people care more about safety than returns because they want to know how secure a bank is before opening an account. So, today we will see whether HDFC bank is safe or not.
Is HDFC bank safe?
HDFC Bank is India's largest private bank in terms of market capitalization. It is also the third largest company by market capitalization at 8.03 trillion INR on the Indian stock exchanges. So, in terms of standards and market capitalization, HDFC is indeed a safe bank.
To be more certain about whether HDFC is truly safe or not, we will examine additional factors. Let's look at some important factors also -
1. Fobes' best bank report : HDFC Bank has been ranked India's No.1 Bank in Forbes' World's Best Bank Report.
2. NPA ratio : NPA ratio gives the percentage of loans or advances that are in default or in arrears. The NPA ratio should be the lowest ( less than 3 %). HDFC bank has -
- Gross NPA ratio - 1.17 %
- Net NPA ratio - 0.32 %, which is excellent.
3. Capital Adequacy Ratio(CAR) :The CAR measures how much capital a bank has on hand in relation to the risks associated with disbursing loans. CAR ought to be high because it makes sure banks have enough cushion to take reasonable losses. Currently ,under Basel II and Basel III, the required minimum capital to risk-weighted assets is 8% and 10.5%, respectively. HDFC bank has -
- Capital Adequacy Ratio -18.9 % (base III). which is quite good.
4. Under Bank Nifty : HDFC bank is the largest bank listed under Bank Nifty in terms of market capitalization.
HDFC bank is safe
HDFC bank is undoubtedly one of the safest banks in India. The bank has maintained the bare minimum requirements to guarantee loss absorption in the event of loan defaults. Additionally, HDFC Bank insures each account holder's deposit of up to Rs 5 lakhs. Therefore, HDFC is a good option in terms of safety.
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Discussion (0)
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