CD ratio cut won't be as steep in FY26, says HDFC Bank

Ratio seen at 85-90% by FY27; loan growth to align with market

- SUBRATA PANDA

HDFC Bank, which has been aggressively bringing down its credit-deposit (CD) ratio over the past year by growing its loan book at a slower pace than the industry average, has indicated that the adjustment in CD ratio will henceforth not be as 'steep'.

The bank, in FY26, plans to grow its loan book in line with the industry average. The CD ratio is expected to remain on a downward trajectory and return to the pre-merger level of 85-90 per cent by FY27. "Our credit-deposit ratio has been brought down from the highs at the time of the merger, which was at 110 per cent, to around 96 per cent as of March 2025. Our deposits have grown faster than the system, and also faster than our loans. Next year, in line with what we had committed, the adjustment in CD ratio will not be so steep, supporting loan growth for the bank. It will be on a downward path," said Sashidhar Jagdishan, managing director (MD) and chief executive officer (CEO), HDFC Bank, in a post earnings' analyst call.