10-15% moderation in salaries not to impact lending practice: HDFC Bank

If the corporates are looking at moderation in salaries or in the increments, the same needs to be watched carefully from a prudential perspective, said the bank's country head for retail lending

Expecting discretionary spending to return in the next few months, private lender HDFC Bank on Wednesday said a 10-15 per cent moderation in salaries will not lead to an overhaul of consumer lending practices though some prudence might be in order.

A pent-up demand for vehicles and social distancing needs, coupled with the introduction of digital inputs to manage customer journey by banks will lead to a faster uptick in auto sales, which were sagging before the lockdown and came to astandstill in the last two months,the bank's country head for retail lending Arvind Kapil said.

Unemployment has touched record highs since