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HDFC Bank CEO Sashidhar Jagdishan outlines the bank’s next growth phase, with stronger advances, healthy credit demand, digital adoption, customer service and GenAI-led efficiencies at the centre of its strategy.
The Print Times
HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan said the bank’s franchise remains “extremely strong” and that it is preparing to move into its next stage of growth, despite navigating several challenges over the past four months.
Speaking during the bank’s Q1FY27 earnings call, Jagdishan said employees had maintained a steadfast focus on customer needs and continued to build the franchise during a difficult period.
“It’s been a very tough period, but I really am proud of them and thank you to each one of them who really stood behind in continuing the strength and resilience of the institution,” he said.
Jagdishan also thanked the board for its guidance and Keki Mistry for serving as Interim Chairman during the period. He welcomed Rajiv Kumar as the bank’s new Chairman, saying the appointment provided stability and sent “a clear signal to minimize uncertainties in a very short time period.”
“We look forward to taking the franchise to the next growth stage,” Jagdishan said.
On the bank’s performance in the first quarter, Jagdishan said deposit growth continued to be relatively better than historical Q1 trends. The bank continued to gain market share on both an incremental and stock basis, while branch productivity also improved, reflecting the benefits of investments made over the past five to six years.
On advances, he said the bank was “on the verge of pressing the pedal,” with advances performing well over the past three to four quarters and that trajectory continuing. The bank is focusing on specific customer segments to manage longer-term opportunities.
Jagdishan said customer service remains a key priority, particularly improving the turnaround time for products and services. The bank is measuring turnaround times at a more granular level across the country.
“We are reimagining our digital journeys analytics so that we are able to have new levels of adoption. That should sort of bring in fair amount of efficiencies in the quarters to come,” he said.
On the operating environment, Jagdishan said policy responses had been timely and effective and that the banking system was witnessing healthy credit demand. He described the Foreign Currency Non-Resident (FCNR) policy window offered to banks as a “great opportunity” and said HDFC Bank was focusing on it.
He added that the bank had spent much of June completing the required documentation and approvals with counterparty banks across various jurisdictions. The ECLGS Scheme 5.0 also represented a good opportunity, with the bank expecting a fair amount of growth in the mid-market segment.
Jagdishan said competition remained intense, particularly on the corporate side, where spreads continued to be very thin. The bank has therefore remained selective while focusing on holistic primary relationship engagement.
He said deposit rates on the granular side had remained reasonably stable, while rates on the non-granular side continued to be elevated. The bank may see some change in its mix during the quarter, including a higher proportion of non-retail short-term assets and moderation in the cost of funds, which he described as elements being tactically managed.
“Fundamentally, the franchise continues to be extremely strong,” Jagdishan said, adding that HDFC Bank would step up multiple product offerings and develop a “one customer view” in the quarters ahead.
Productivity will remain a key focus, with the bank expecting efficiency gains from digital adoption, process re-engineering and greater customer focus through its senior supervisory architecture. These initiatives are expected to help reduce delivery times significantly.
Jagdishan said the bank had provided tools for deeper customer engagement and was preparing to harness GenAI technologies across its processes. Several lighthouse programmes are expected to move into production during the year.
He also highlighted security as an important part of the bank’s strategy, saying HDFC Bank was examining how artificial intelligence could be used to strengthen its defence mechanisms.
While risks remain from weather-related disruptions, including El Nino, and geopolitical developments in West Asia, Jagdishan said the country had weathered such challenges reasonably well.
“We continue to remain very sanguine. We are prepared for as the country and hence as a company in terms of weathering any such challenges in the near future,” he said.
Concluding, Jagdishan thanked employees and stakeholders for their support during a challenging period and said the bank remained committed to its customers and other stakeholders.
“I think good times are here to come and we stay committed towards customer and other stakeholders in terms of what HDFC Bank has always been to all these stakeholders over these last 30 years,” he said.
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