HDFC Bank Posts Strong FY26 Growth, MD Sees India Well-Poised Despite Global Uncertainty

Mumbai, July 11, KNT: HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan has expressed confidence in India’s long-term growth prospects, saying the country’s resilient economy, policy continuity and strong domestic demand have enabled it to withstand a challenging global environment, even as the bank delivered robust financial performance during the financial year 2025-26.

In his message to stakeholders in the bank’s Integrated Annual Report 2025-26, Jagdishan said global trade disruptions, geopolitical tensions, volatile energy markets and supply chain uncertainties created significant headwinds during the year. Despite these challenges, he noted that India remained among the world’s fastest-growing major economies, supported by strong macroeconomic fundamentals and stable policy measures.

Highlighting HDFC Bank’s performance, the MD & CEO said advances grew by 12.1 per cent during FY26, while deposits increased by 14.4 per cent, outpacing the overall banking system. The bank also recorded a 10.9 per cent rise in profit after tax, while maintaining its traditionally strong asset quality. Total deposits crossed ₹31 lakh crore and the balance sheet expanded to more than ₹43.64 lakh crore during the year.

Jagdishan said the bank remained focused on profitable growth despite pressure on net interest margins following policy rate reductions by the Reserve Bank of India. He added that operational efficiencies helped maintain stable returns even in a softer interest-rate environment.

The HDFC Bank chief said the integration following the merger with HDFC Ltd. had strengthened the group’s position as a diversified financial services conglomerate. He noted that the mortgage business continued to expand, with the bank emerging among the country’s top two home loan players while significantly improving cross-selling opportunities in insurance and other financial products.

On technology, Jagdishan described artificial intelligence as central to the bank’s future strategy, saying AI-powered solutions had been integrated across customer service, retail assets, trade operations and digital banking platforms. He said the bank had developed its in-house AI platform, “Neev”, to accelerate innovation, improve operational efficiency and enhance customer experience.

He also underlined the bank’s continued investment in cybersecurity, digital infrastructure and customer-centric initiatives, including AI-assisted fraud detection, upgraded mobile and internet banking platforms and expanded branch operations to strengthen service delivery across the country.

Reflecting on governance, Jagdishan said the bank had strengthened its corporate governance framework and highlighted the listing of HDB Financial Services as a major milestone during the year. He also referred to the Board’s response following the resignation of former Chairman Atanu Chakraborty, saying an independent legal review found that concerns mentioned in the resignation letter were not substantiated by available records or witness interviews.

Looking ahead, the HDFC Bank chief acknowledged continuing global uncertainties, including geopolitical tensions, trade fragmentation and climate-related risks. However, he maintained that India’s economic fundamentals, demographic advantage and policy stability positioned the country for sustained long-term growth, expressing confidence that the bank would continue to focus on prudent risk management, technology-led transformation and sustained value creation for stakeholders. [KNT]

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