What is HDFC Bank's loan growth outlook?

HDFC Bank expects to grow its loan book faster than the system by FY27, signaling strong growth momentum.

How is GST rationalization impacting HDFC Bank's business?

GST rationalization is contributing to strong economic growth and consumption, benefiting banks like HDFC Bank.

When will HDFC Bank's margins improve?

Margins are expected to improve over the next four quarters as borrowings are replaced by deposits and rates are repriced downwards.

Home / Business and Economy / HDFC Bank Eyes Faster Loan Growth Amid Economic Upswing

HDFC Bank Eyes Faster Loan Growth Amid Economic Upswing

24 Nov

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Summary

HDFC Bank anticipates strong economic growth post-GST rationalization.
Loan growth guidance retained, aiming to outpace system by FY27.
Improving margins expected as deposits are repriced downwards.

HDFC Bank Eyes Faster Loan Growth Amid Economic Upswing

HDFC Bank's senior management has indicated to investors a robust economic growth momentum, attributed to the recent rationalization of Goods and Services Tax (GST) rates. This positive outlook is further supported by early signs of increasing private capital expenditure as capacity utilization in several sectors has surpassed 80 percent.

The bank has reaffirmed its loan growth guidance for the fiscal year 2027, projecting its loan book expansion to exceed the overall system growth. This follows a strategic period of slower loan growth in FY25 and aligned growth in FY26 to optimize the credit-deposit ratio post its merger with HDFC Ltd.

Furthermore, HDFC Bank anticipates improved net interest margins as it replaces higher-cost borrowings from the erstwhile HDFC Ltd with deposits, alongside downward repricing due to the Reserve Bank of India's rate cuts. The management also expects the credit-deposit ratio to remain slightly above 90 percent.

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