HDFC Bank’s deposits outpace loans in FY25; CEO sees faster loan growth by FY27

HDFC Bank has wrapped up its first full year after merging with HDFC Ltd, with the integration phase now behind it. The bank reported that its deposits grew 2.5 times faster than its loans in FY25, helping bring down the credit-to-deposit ratio to 96% from around 110% at the time of the merger.

Sashidhar Jagdishan, Managing Director and CEO of HDFC Bank, told shareholders that the bank now holds an 11% market share of total banking deposits in India.

He highlighted that maintaining low bad loans has remained the bank’s strength through various business cycles.

The bank aims to grow its loan book in line with the broader system in FY26 and outpace it in FY27. It slowed loan growth deliberately in FY25 to strengthen the balance sheet post-merger.

Over the past four years, HDFC Bank has stepped up its technology capabilities and is now preparing to roll out new digital tools, including Generative AI, to improve customer service. Jagdishan described this as the bank’s “most transformative phase yet”.

On the ground, the bank added over 700 branches during FY25 and plans to expand further. The CEO noted that the combination of merger synergies, a lower credit-to-deposit ratio, and large-scale deposit mobilisation are expected to support the bank’s growth plans.

Using a cricketing metaphor, Jagdishan said the bank “focused on taking singles in the year that concluded and is now positioned to go for the boundaries.”