C D ratio will not drag loan growth plans: HDFC Bank MD

Lender is committed to a downward glide path, targeting a range of 85-90% by FY27

- SUBRATA PANDA

Despite its credit-deposit (C D) ratiotopping 98 per cent in the third quarter of financial year 2026 (Q3FY26), HDFC Bank has indicated that the elevated ratio will not constrain loan growth in FY26, with growth expected to match the industry, and outpace it in FY27.

At the same time, India’s largest private lender reiterated its commitment to bring its C D ratio down, targeting a range of 90-96 per cent by the end of FY26 and 85-90 per cent by FY27 — levels broadly in line with its pre-merger average.

“Under the current scenario, we do not think that we shall be constrained by the C D ratio. To reiterate, we are confident that it will be on a downward glide path. I would also like to reiterate that we shall meet the glide path that we had indicated earlier in terms of our topline growth, which is in line with the system this financial year (FY26) and faster than the system in the next financial year (FY27),” said Sashidhar Jagdishan, MD & CEO, HDFC Bank, in a call with analysts following the banks’ Q3 results.

‘The banks’ advances grew nearly 12 percent year-on-year (Y-0-Y) in Q3FY26.