Q1 2026 HDFC Bank Ltd Earnings Call Transcript
Key Points
- HDFC Bank Ltd (HDB) reported a healthy growth in average deposits at a pace of 16% year on year, continuing to gain market share.
- The bank successfully reduced its credit deposit ratio from 110% to about 95%, aligning with strategic objectives.
- Asset quality remains strong, positioning the bank well for growth in both assets and deposits.
- The bank announced an interim dividend of INR5 per share and recommended a bonus share issue in the ratio of one is to one.
- HDFC Bank Ltd (HDB) is optimistic about growth prospects, with expectations of improved loan growth driven by domestic demand and policy support.
- The bank experienced a slowdown in average advances growth to about 7% last year, reflecting a cautious approach.
- Margins are under pressure due to the lead-lag impact of policy rate changes, with deposits taking longer to reprice compared to loans.
- The bank's CASA ratio saw a decline post-merger with HDFC Limited, impacting the low-cost deposit franchise.
- Credit costs have increased slightly from 29 to 41 basis points, with expectations of normalization over time.
- Fee income was subdued in the quarter, particularly in third-party distribution fees, impacting overall revenue growth.
Ladies and gentlemen, good day and welcome to HDFC Bank Limited 1 F 526 earnings conference call.
As a reminder, all participant lines will be in the lesson learning mode, and there will be an opportunity for you to ask questions after the brief commentary by the management.
Should you need assistance during this conference call, please signal an operator by pressing 0 on your dashtone phone. Please note that this conference is being recorded.
I now have the conference Mr.
Shinivasan Vedanathan, Chief Financial Officer, HDFC Bank.
Thank you and OD Mr. Vedanathan.
Thank you, Neera.
Good evening and welcome to all the participants, today. We have, Sashi Jagish, our, CEO and MD, with us this evening. We'll hand it off to them for opening remarks, then we'll get back to you. Sahi, over to you for opening remarks, please.
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