HDFC Bank confident of growing advances on par with industry in 2025-26 fiscal year

HDFC Bank’s CEO, Sashidhar Jagdisha, on Monday, July 14, said that the bank is confident in growing its advances on par with the industry in the 2025-26 financial year and exceeding it in the next fiscal (FY 2026-27).

In the March FY25 quarter, the country’s largest bank reported a 5.4% year-on-year (YoY) surge in its advances to ₹28.2 lakh crore.

The bank’s FY25 results represented the first full year of operations since its merger on July 1, 2025, Jagdishan said in a message published in HDFC Bank’s annual report.

Jagdishan, in his message published in the bank's annual report, said the results of FY25 represented the first full year of operation since the merger on July 1, 2023.

During the last financial year, the bank reported healthy growth while maintaining pristine asset quality, which has been its unique selling point (USP) for multiple business cycles, he said.

HDFC Bank clocked a net profit of ₹67,347.4 crore in the March 2025 quarter, surging 10.7% year-on-year (YoY), while net interest income grew by 13%.

Credit-to-deposit ratio

"Your Bank's balance sheet rose by over 8% to ₹39,10,199 crore. Gross NPAs (non-performing assets) were at 1.33% of Gross Advances. Advances grew by 5.4% to ₹26,19,609 crore while deposits grew 14.1% to ₹27,14,715 crore," Jagdishan said.

The bank’s deposits grew 2.5 times faster than its loans.

"As stated, we have taken affirmative steps to bring down the credit-to-deposit ratio and reduce the percentage of high-cost borrowings,” he stated.

"We consciously calibrated our loan growth in FY25 to reposition the balance sheet. Aided by appropriate and disciplined pricing and focused on quality growth, we were successful in achieving the same," he said.

High-cost borrowing

The percentage of high-cost borrowings has come down to 14% at the end of the fiscal year 2024-25. The credit deposit ratio has been brought down to 96% as on March 31, 2025, from a high of about 110% at the time of the merger, he added.

Bank's deposits have grown faster than the system, and what is noteworthy is that, with a market share of 5% of branches in the banking system, we have a market share of 11% of banking deposits, Jagdishan said.

Further, the bank garnered an incremental deposit market share of approximately 14.6% 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 have resulted in a much stronger bank, which is now poised to capitalise further on growth opportunities," he said.

"As stated earlier, we are confident of growing our advances on par with the system in FY26 and higher than the system in FY27," the MD and CEO said.

The bank continues to enhance its information security posture through a range of strategic and technology-driven initiatives aimed at strengthening its information security and resilience against evolving cyber threats, he further stated.

These initiatives, he said, align with regulatory expectations and industry best practices to ensure the confidentiality, integrity, and availability of the bank's digital infrastructure and applications.

Shares of HDFC Bank closed 0.04% lower at ₹1,982.90 apiece on the National Stock Exchange (NSE) on Monday.

The bank has a total market capitalisation of ₹15.2 lakh crore, as of July 14, 2025, as per data on the NSE.