HDFC Bank Eyes Aggressive Growth in FY26 Post-Merger: CEO Jagdishan

Lucknow. #HDFCBank is set to enter an aggressive growth phase in FY26 following a year of consolidation post-merger, according to MD & CEO Sashidhar Jagdishan. In his first full-year communication to shareholders since the landmark merger, Jagdishan likened FY25 to playing “steady singles” — a phase of laying the groundwork — and declared that the bank is now ready to start “hitting boundaries” by pursuing out-sized growth opportunities.

Jagdishan described FY25 as a defining milestone for the newly merged entity — one marked by resilience, disciplined integration, and strategic recalibration. With the consolidation phase now complete, HDFC Bank is prepared to scale operations aggressively, backed by a robust balance sheet, macro tailwinds, and a re-engineered strategy.

“We spent FY25 fortifying our base. Now, we’re entering our most transformative phase yet,” Jagdishan said.

Despite a global slowdown and tempered GDP growth, India’s economic resilience, driven by structural reforms and policy support, provided fertile ground for growth. HDFC Bank capitalized on this environment, capturing 11% of system-wide deposits with just 5% of the country’s branch network — underscoring its operational efficiency and customer reach.

Key Performance Highlights:
Deposits rose by 14.1%, significantly outpacing loan growth by 2.5x.

The Bank accounted for 14.6% of incremental deposit accretion system-wide.

Credit-deposit ratio improved to 96%, reflecting stronger asset-liability alignment.

High-cost borrowings dropped to 14%, showing prudent capital management.

These metrics, according to Jagdishan, indicate not just recovery, but readiness for acceleration.

Focus on Technology and GenAI:
Beyond financials, HDFC Bank is betting big on technology and innovation. Jagdishan described Generative AI (GenAI) as potentially as disruptive and transformative as the internet or mobile revolution. He stressed that, when deployed responsibly, GenAI would enable faster innovation, smarter operations, and deeper customer engagement.

To lead this transformation:

The bank has launched 15 structured GenAI programs,

Established a centralised academy to build internal capabilities,

Adopted a platform-based approach to ensure scalability and security.

“GenAI, with the right safeguards, is not just a tech leap—it’s a strategic accelerator,” Jagdishan noted.

The Road Ahead : With integration hurdles behind it and a sharpened focus on digital innovation, HDFC Bank now sees itself uniquely positioned to drive sustainable, high-impact growth in FY26 and beyond. The leadership reiterated a commitment to disciplined expansion, leveraging both scale and intelligence to unlock long-term shareholder value.

As India’s largest private sector lender turns the page from consolidation to acceleration, HDFC Bank appears ready to redefine its role in the next phase of India’s banking evolution.