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Informist, Saturday, Jul. 18, 2026

 

--HDFC Bank: On the cusp of pressing the pedal on advances 

--CONTEXT: Comments from HDFC Bank mgmt in post earnings press conference 

--HDFC Bank: Focusing on liquidity augmentation from RBI's FX schemes 

--HDFC Bank: Expect momentum to pick up in FCNR (B) in Jul-Sept 

--HDFC Bank: Focusing on liquidity coverage, not on credit-deposit ratio 

 

MUMBAI – HDFC Bank Ltd. is preparing to step up credit growth after spending the past few quarters strengthening its liability franchise, with the country's largest private lender saying it is "on the cusp of pressing the pedal" on advances even as it intensifies efforts to mobilise foreign currency deposits under the Reserve Bank of India's special liquidity measures.

 

Speaking after the bank's June quarter earnings, Managing Director and Chief Executive Officer Sashidhar Jagdishan said the lender was seeing ample lending opportunities and remained optimistic about the operating environment, while stressing that recent investments in branch expansion, technology and customer acquisition would begin translating into stronger business momentum over the next few years. 

 

"Our deposit growth has been relatively higher to historical Q1 (Apr-Jun) trends...Advances, as we had envisioned, we are on the cusp of pressing the pedal," Jagdishan said, adding that the bank expected to reap the benefits of investments made over the past five to six years in distribution and branch expansion. 

 

The comments come as HDFC Bank seeks to improve its funding profile following its merger with Housing Development Finance Corp, while balancing growth in advances with deposit mobilisation. A key focus for the bank is the RBI's recently announced foreign exchange mobilisation measures, including the Foreign Currency Non-Resident(Bank) deposit scheme and swap window aimed at attracting overseas deposits.

 

Jagdishan said the bank had spent much of June and early July putting in place product approvals, documentation and operational infrastructure to participate in the scheme. "Liquidity augmentation through FCNR and swap is an opportunity that we are focusing on," he said. "Over the next couple of months, we should see the momentum picking up."

 

During the interaction, the management said it expects FCNR(B) mobilisation to gather pace through the Jul-Sept quarter as marketing efforts intensify and operational readiness improves. It said that the bank had already mobilised a substantial amount over the past few days, but declined to reveal specific figures or internal targets until the scheme concludes. 

 

For leveraged deposits, the bank has already raised about $750 million through overseas borrowings and is considering offering leverage of around nine times to select customers, while leverage arranged through overseas banking partners could range between nine and 19 times, depending on jurisdictional regulations.

 

Jagdishan said HDFC Bank expected to mobilise a "very healthy" amount under the scheme by September, although he refrained from disclosing a specific target. He also cautioned that the industry's overall mobilisation potential might be lower than initial estimates because tax treatment in several developed markets and regulatory restrictions in parts of West Asia have reduced the addressable opportunity. 

 

On balance-sheet management, the bank indicated that liquidity metrics, not the credit-deposit ratio, would guide its strategy. Responding to concerns about the bank's credit-deposit ratio of around 96%, Jagdishan said the regulatory focus had shifted towards liquidity coverage ratio. "The CD (credit-deposit) ratio is not an indicator that is going to be focused on...It's going to be the liquidity coverage ratio. That is exactly what we are also focusing," he said, adding that the bank remained comfortable with its liquidity position. 

 

The bank reported a net profit of INR 190.60 billion for Apr-Jun, compared to INR 181.55 billion a year ago. The net profit missed analysts' estimate by over INR 2 billion. On Friday, shares of HDFC Bank ended at INR 819.60 on the National Stock Exchange, up 1.4% over Thursday.  End

 

Reported by Kabir Sharma and Janwee Prajapati

Edited by Avishek Dutta

 

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