Home / Business and Economy / HDFC Bank Moderates FY27 Growth Amid Geopolitical Woes
HDFC Bank Moderates FY27 Growth Amid Geopolitical Woes
19 Apr
Summary
- HDFC Bank now targets 12% loan growth in FY27, down from earlier projections.
- Geopolitical uncertainties prompt a more cautious growth outlook for FY27.
- Bank shifts focus from Credit-Deposit ratio to LCR and NSFR metrics.
HDFC Bank, India's largest private lender, has adjusted its FY27 growth outlook, now targeting a 12% year-on-year increase, aligning with its FY26 momentum. This recalibration stems from a more measured view of the bank's trajectory amid geopolitical uncertainties, moving away from its previous guidance to outpace system credit growth.
The bank experienced a notable improvement in loan growth in FY26, reaching 12% compared to 5.4% in FY25. This aligns with its strategy to manage its credit-deposit ratio post-merger. Despite reported system credit growth of 16% in FY26, HDFC Bank's CEO noted real growth is closer to 14%, emphasizing responsible expansion.
Looking ahead, HDFC Bank anticipates sustained corporate growth driven by demand in sectors like electronics and renewables, though it may moderate in light of geopolitical developments. Retail growth has also shown a stronger pick-up across various segments, including vehicle financing and mortgages.
The bank's management has clarified that the credit-deposit ratio is no longer a primary focus. Instead, the bank is concentrating on maintaining optimal liquidity coverage ratio (LCR) and net stable funding ratio (NSFR), as emphasized by the RBI. The bank's CEO also expressed support for Keki Mistry to continue as part-time chairman.
