Global geo-strategic uncertainties bound to affect intra, cross-border flows of capital: HDFC Bank chief

HDFC Bank's part time chairman discusses global economic uncertainties, Indian economy growth, and successful merger at AGM.

Global geo-strategic uncertainties have affected a wide swathe of the world, including India’s neighbourhood. Adjustments in monetary policy in major economies have tried to remove the overhang of liquidity that was feeding inflation, HDFC Bank’ part time chairman Atanu Chakraborty told shareholders at the company’s AGM on Friday. 

“These are bound to affect intra and cross border flows of capital. However, your bank is closely monitoring risks associated with such occurrences,” he said. 

He said that the positives and growth prospects of the Indian economy far outweigh the challenges that were global in nature. 

“However, the Indian economy has emerged as one of brightest spots in the global macro scenario. We continue to remain the fastest growing major economy. As against a projected global GDP growth rate of 3.2% this year, India is projected to grow in the range of 6.5 to 7.0 %,” he said. 

The timely interventions of the Reserve Bank of India and its monetary policy actions had been crucial in combating inflation, the part time chairman said. 

 He said the recently announced Union Budget also layed the pathway for India’s future growth and its priority areas. 

On the bank he said the merger of HDFC Ltd. with the bank remained amongst the largest in the history of corporate India and amongst the most complex in the financial services sector in the country.