HDFC Bank, following its recent merger, aims to concentrate on profitable growth while maintaining high asset quality standards. CEO Sashidhar Jagdishan emphasized the need to reassess the bank’s liability profile to align with strategic goals. The bank’s borrowing proportion increased to 21% post-merger, necessitating a different approach to key metrics compared to pre-merger levels.
Expansion and Branch Addition
HDFC Bank added over 900 branches in the past year and plans to continue this expansion, viewing branches as crucial for future deposit mobilization.
Financial Stability and Cybersecurity
The bank plans to bring down the credit-to-deposit ratio to pre-merger levels by leveraging its distribution strengths. Cybersecurity and data privacy remain top priorities, with investments in AI and ML to protect customers from fraud.
Urbanization and Growth Opportunities
The merger offers significant growth opportunities through the mortgage business, supported by India’s unprecedented urbanization. The bank has shown consistent double-digit growth in its home loan business post-merger.