HDFC Bank Limited has informed the Exchange about Transcript
HDFCBANK · price
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HDFC Bank shared the transcript of its Q1 FY26 earnings call held on July 19, 2025. Average deposits grew 16% year-on-year last year with market share gains, while loan growth was deliberately slowed to ~7% to bring the credit-deposit (CD) ratio from 110% at merger to ~95% currently. Loan growth has now picked up to 8% in Q1 FY26, and management expects to match system growth in FY26 and grow faster in FY27. The Board declared an interim dividend of INR 5 per share and announced a first-ever 1:1 bonus issue. HDB Financial Services was listed on July 2 after the bank's stake dilution. Margins face headwinds as ~70% of assets are floating-rate while liabilities are mostly fixed, and deposit repricing takes 12-18 months; NIM is expected to trough in Q2 FY26 if no more rate cuts occur. Asset quality remains strong with retail GNPA (ex-agri) at 82 bps, stable year-on-year. Cost-to-income normalized at 39.6%, and the bank added 4,000 employees in the quarter to staff newly opened branches.
Positive for shareholders via the 1:1 bonus issue and INR 5 interim dividend, but near-term NIM pressure from the rate cut cycle remains a watchpoint. Loan growth re-acceleration and stable asset quality support the medium-term thesis, though CASA market share recovery will take time as the bank refocuses on customer engagement and cross-sell.