HDFC Bank to up loan book slower than deposits, focus on reducing CD ratio

HDFC Bank will be growing its advances slower than the deposits, and focus on getting the credit-deposit ratio to the pre-merger levels, according to a top bank official.

In the annual report of the country's largest private sector lender, its managing director and chief executive Sashi Jagdishan suggested that profitability will also be a core aspect of its strategy.

Jagdishan said the bank which merged its home loan-focused parent HDFC Ltd with itself last July is passing through a phase of "adjustment" where it will be focusing on adequate liquidity buffers, and repaying HDFC's borrowings on maturity and also before that.

"During this time of adjustment, the Bank would grow its advances a little slower than the deposit growth," he said in the message to shareholders.

The bank will endeavour to bring down the credit-to-deposit ratio to the pre-merger levels, Jagdishan said, adding that it will continue to focus on granular deposit mobilisation on the back of the distribution ...