HDFC Bank to achieve a Pre-Merger Credit Oposit ratio in FY27, focus on expansion

Copyright © HT Digital Streams Limit all rights reserved. Operate a filing photo from an HDFC bank office in Mumbai. Summary of India’s largest private sector money shooter is increasing its branch network and shifting the focus to deposit-led growth, even if loans expansion. The goal: Recalibrate the balance sheet statistics that were disrupted by the HDFC LTD merger. Mumbai: HDFC Bank expects its Credit Oposit (CD) ratio to FY27 to return to the pre-Merger levels of 85-90%, as the largest money shooter in India strengthens the efforts to grow deposits faster than loans. The strategy is part of the bank’s recalibration after its integration with HDFC Ltd in July 2023. In a earnings call to the results of the March quarter, CFO Srinivasan Vaidyanathan said the bank would continue to align its deposit rates with the broader market in a falling interest rate, while focusing on the expansion of its distribution. to get deposit market share. “We remain competitively priced among the various big five banks. That means there is no specific tariff -related benefit on the savings deposits as such between us or peer banks,” Vaidyanathan said. “There is no competitive distinction that provides it, but we are confident that our distribution strength, addition and involvement of clients must like a market share that gets a point of view.” Read it | Powering liquidity forced borrowers to increase the short-term loans in the CD ratio of the FY25 HDFC Bank, improved to 96.5%, lower than a post-peak of 110% and 104.4% a year before. Vaidyanathan said as liquidity and economic growth improved, the bank was “well placed to grow in deposits and loans”. On a standalone basis, India’s largest private sector lenders reported a net profit of £ 17,616 for the March quarter, from a year earlier of £ 16,512. Net interest income (NIM) rose 10.3% year-on-year to £ 32,070 crore, supported by a modest expansion in the net interest margin to 3.5% and an increase of 5.4% in gross progress. After two consecutive cuts of 25 basis point by the Reserve Bank of India, HDFC Bank led this cycle of savings rate reductions among major banks – which left 25 basis points by 25 basis points with 25 basis points over the past week, and on fixed deposits with up to 50 basis points earlier this week. The rate movements come as the bank manages funding costs, while its credit deposit ratio is recalibrated to pre-composition levels. The total deposits rose 14.1%on March 31, 2025 to £ 27.1 trillion on 31 March 2025. Term deposits grew by 20.3%, while Casa (current and savings account) rose 3.9%, pushing the Casa ratio to 34.8%. The bank’s deposit market share stood at 11.1%, with its distribution footprint accounting for 6% of the total of the industry. Deposit -rise per branch rose to £ 300 crore, higher than 80 crore last year. “We continue to acquire the market share,” Vaidyanathan said, noting that the bank’s floor in semi-urban and rural areas was deepening. “Our effort is to achieve what our Pre-Merger was, when we usually operated between 85-90%.” While deposit growth has taken the lead, loans growth is expected to be in line with the growth of the system level in FY26 after lying in the FY25. The bank expects to surpass the market in FY27, which regains the share on the lending side. To manage loan growth and funding, the bank will continue to secure assets over the next three to five years. It should provide a space to grow faster and maintain the market opportunity that will come so that we can take the loans to secure and finance it in an optimized way, ‘Vaidyanathan added. Read it | Loan growth delays for banks in the fourth quarter of the fourth quarter, as liquidity remains tight, the coarse advances of deposits increased by 5.4%year -on -year to £ 26.4 trillion on March 31, 2025. Retail loans grew by 9%, while commercial and rural bank loans increased by 12.8%. In contrast, corporate and other wholesale loans fell 3.6%. Read also | HDFC Bank’s Human Resources Head of Human Resources was 30%of the total book, with other retail loans consisting of 19-20%, commercial and rural banking about 33%, and accounting for corporate and whistles, Vaidyanathan said. He added that the largest growth potential is currently in retail loans, given the relatively low credit penetration of the segment. The physical network of the bank expanded to 9,455 branches and 21.139 ATMs in 4.150 cities, higher than 8,738 branches and 20,938 ATMs in 4.065 cities a year before. Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More Topics #HDFC Bank #HDFC Bank Ltd #HDFC Bank Merger Mint Special