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HDFC Bank: Loan Growth Unfazed by High CD Ratio
18 Jan
Summary
- HDFC Bank expects loan growth to match industry by FY26.
- The bank targets a CD ratio of 90-96% by FY26.
- Deposit growth is broadly in line with top-line growth.
HDFC Bank, despite a CD ratio reaching 98.5% in Q3 FY26, stated that loan growth will remain unaffected. The bank projects its growth to align with the industry in FY26 and surpass it in FY27. This strategy aims to bring the CD ratio down to a pre-merger range of 90-96% by the end of FY26 and further to 85-90% by FY27.
CEO Sashidhar Jagdishan expressed confidence that the CD ratio will not constrain lending, highlighting encouraging credit growth across segments. He noted that favorable interest rates and a benign credit environment have spurred this expansion. The bank is focused on maintaining rate discipline in its deposit mobilization efforts to support this trajectory.
Following its merger with HDFC Ltd in July 2023, the bank had previously moderated growth to manage its CD ratio, which had peaked around 110%. Now, with a focus on granular deposit mobilization and customer engagement, HDFC Bank is setting foundations to fund its accelerated loan growth in FY26 and FY27.
