HDFC Bank, the second-largest private sector bank in India, has exceeded the single-borrower limits prescribed by Reserve Bank of India (RBI) in case of its credit exposure to Reliance Industries (RIL). RBI has set the credit exposure ceiling of a bank at 15% of capital funds in the case of a single borrower and at 40% for a borrower group. However, the central bank allows banks to increase this exposure by a further 5% of capital funds in exceptional circumstances, with approval of their boards.
HDFC Bank is one of India’s premier banks providing a wide range of financial products and services to its over 28.9 million customers. As of December 31, 2014, the Bank had a distribution network with 3,659 branches and 11,633 ATMs in 2,287 cities/towns. The bank offers all services under one roof right from savings account, current account, demat account, auto loans and agriculture loans.
