HDFC Bank deposits grow 2.5 times faster than loans: CEO Sashidhar Jagdishan
In a message to shareholders ahead of the bank's Annual General Meeting, Jagdishan highlighted that HDFC Bank's deposit growth is significantly ahead of the industry average. 'It's noteworthy that although we have just 5 per cent of the total bank branches in the country, we hold 11 per cent of the total banking deposits,' he said. During the last financial year, the bank captured 14.6 per cent of all new deposits in the system.
He also said the bank has taken focused steps to bring down its credit-to-deposit ratio and reduce its dependence on high-cost borrowings.
He added that the bank's aggressive push has been focused on strategy and execution—not on offering higher rates to attract funds. 'We have not been aggressive on pricing, whether for loans or deposits,' Jagdishan said.
By the end of FY 2024–25, high-cost borrowings were reduced to 14 per cent of the bank's funding mix. Meanwhile, the credit-to-deposit ratio—a measure of how much a bank lends out of its total deposits—dropped to 96 per cent as of March 31, 2025. This marks a significant improvement from a peak of around 110 per cent at the time of the bank's merger.
Jagdishan explained that the bank took a measured approach to loan growth during FY25 to realign its balance sheet. 'With disciplined pricing and a focus on quality growth, we achieved our objectives,' he said.
Looking at the broader picture, he expressed confidence in India's economic prospects. 'Despite global challenges, India remains poised to be the fastest-growing large economy in the world.'
He also highlighted the successful integration of merger synergies, improved credit-to-deposit ratio, and robust deposit mobilisation as major positives for the bank. 'To borrow a cricketing analogy, last year we focused on taking singles. Now, we're ready to go for the boundaries,' he quipped.
However, Jagdishan cautioned about potential domestic risks. These include slower-than-expected recovery in consumer demand, inflation due to weather-related disruptions, and financial market volatility stemming from global uncertainties. He also flagged rising geopolitical tensions and trade policy risks as factors that could complicate the economic environment.
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