Confident Of Growing Our Advances On Par With Industry In Fiscal 2026: HDFC Bank CEO

HDFC Bank is confident of growing its advances on par with the industry in the current financial year and exceeding it next year, Managing Director & Chief Executive Officer Sashidhar Jagdishan said in a message to stakeholders. Jagdishan, in his message published in the bank's annual report, said the results of fiscal 2025 represented the first full year of operation since the merger on July 1, 2023.

He said that in the last financial year, the bank reported healthy growth while maintaining pristine asset quality, which has been its USP across business cycles.

Net profit increased by 10.7% to Rs 67,347.4 crore in March 2025, while net interest income grew by 13%.

"Your Bank's balance sheet rose by over 8% to Rs 39,10,199 crore. Gross NPAs were at 1.33% of Gross Advances. Advances grew by 5.4% to Rs 26,19,609 crore while deposits grew 14.1% to Rs 27,14,715 crore," Jagdishan said. As is evident, he said the bank's deposits grew 2.5 times faster than loans.

"As stated, we have taken affirmative steps to bring down the credit-to-deposit ratio and reduce the percentage of high-cost borrowings."

"We consciously calibrated our loan growth in fiscal 2025 to reposition the balance sheet. Aided by appropriate and disciplined pricing and focused on quality growth, we were successful in achieving the same," he said.

The percentage of high-cost borrowings has come down to 14% at the end of the fiscal year 2024-25. The credit deposit ratio has been brought down to 96% as on March 31, 2025, from a high of about 110% at the time of the merger, he added.

Bank's deposits have grown faster than the system, and what is noteworthy is that, with a market share of five per cent of branches in the banking system, we have a market share of 11% of banking deposits, Jagdishan said.

Further, the bank garnered an incremental deposit market share of approximately 14.6% in the last financial year.

"I believe we have successfully navigated the merger, and the bank is now positioned for faster growth. The reset in loan growth and the consolidation of the merger have resulted in a much stronger bank, that is now poised to capitalise further on growth opportunities," he said.

"As stated earlier, we are confident of growing our advances on par with the system in fiscal 2026 and higher than the system in fiscal 2027," the MD and CEO said.

He further said the bank continues to enhance its information security posture through a range of strategic and technology-driven initiatives aimed at strengthening its information security and resilience against evolving cyber threats.

These initiatives, he said, align with regulatory expectations and industry best practices to ensure the confidentiality, integrity, and availability of the bank's digital infrastructure and applications.