HDFC Bank CEO Sees Tailwind From Lower CD Ratio, Strong Deposit Growth

HDFC Bank is now well-positioned for faster growth after successfully navigating the merger of the erstwhile mortgage lender HDFC Ltd into itself, said Sashidhar Jagdishan, managing director (MD) and chief executive officer (CEO) of India's largest private-sector lender.

- SUBRATA PANDA

HDFC Ltd merged into HDFC Bank on July 1, 2023, creating a financial behemoth. The bank recalibrated its loan growth in FY25 to bring down the elevated credit-deposit (CD) ratio post-merger. The reset in loan growth and the consolidation of the merger has resulted in a much stronger bank, Jagdishan said in a message to the shareholders.

"The successful playing out of the merger synergies, the reduction in the credit deposit ratio, and the large-scale mobilisation of deposits, all constitute tailwinds for your bank. To use a cricketing analogy, we focused on taking singles in the year that concluded and are now positioned to go for the boundaries," he said.