Jagdishan said the bank’s deposits grew 2.5 times faster than loans while bringing down the credit-to-deposit ratio and high-cost borrowings.
Jagdishan noted that with a market share of 5 per cent of branches in the banking system, HDFC Bank has a share of 11 per cent of banking deposits. (Source: reuters)
Largest private sector lender HDFC Bank is confident of growing its advances on par with the industry in the financial year 2025-26 and higher in FY27, said Managing Director and Chief Executive Officer Sashidhar Jagdishan in a message to stakeholders. Following the release of the bank’s annual report, Jagdishan said the FY25 results represented the first full year of operations since its merger with parent company and home loan provider HDFC Ltd in 2023.
As of March 2025, gross advances of scheduled commercial banks stood at Rs 181 lakh crore, growing from Rs 163 lakh crore as of March 2024, according to the data from the Reserve Bank of India.
HDFC Bank had reported 5.4 per cent growth in advances to Rs 26.19 lakh crore while deposits grew 14.1 per cent to Rs 27.14 lakh crore. The bank’s balance sheet rose by over 8 per cent to Rs 39.10 lakh crore while gross NPAs were at 1.33 per cent of gross advances.
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Its net profit jumped by 10.7 per cent to Rs 67,347.4 crore on March 31, 2025 while Net Interest Income grew by 13.0 per cent to Rs 1.22 lakh crore and Net Interest Margin (NIM) stood at 3.48 per cent.
Jagdishan said the bank’s deposits grew 2.5 times faster than loans while bringing down the credit-to-deposit ratio and high-cost borrowings. “You will be happy to know that the percentage of high-cost borrowings has come down to 14 per cent at the end of the fiscal year 2024-25. The credit deposit ratio has been brought down to 96 per cent as on March 31, 2025, from a high of about 110 per cent at the time of the merger,” he said.
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Jagdishan noted that with a market share of 5 per cent of branches in the banking system, HDFC Bank has a share of 11 per cent of banking deposits. Moreover, the bank has garnered an incremental deposit market share of around 14.6 per cent 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 has resulted in a much stronger bank, that is now poised to capitalise further on growth opportunities,” he said.
Last week, RBI had imposed a monetary penalty of Rs 4.88 lakh on HDFC Bank for contravention of certain norms pertaining to foreign investment in India while granting a term loan to its client.
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