logo
HDFC duo's merger still looms over industry's credit growth

HDFC duo's merger still looms over industry's credit growth

Time of India4 days ago
HDFC Bank
MUMBAI: The merger of HDFC and HDFC Bank in FY24, which slowed down bank credit growth in FY25, continues to remain a drag on overall lending, pulling industry credit growth into single digits in Q1FY26.
The combined entity's loan growth fell from 15-17% before the merger to 5.4% in FY25 and remained below the industry pace in the June quarter. According to RBI data, bank credit growth stood at 9.5% at the end of Q1, while deposits grew 10.1%. As against this HDFC Bank's outstanding loans and deposits grew 6.7% and 16.2%.
The slowdown was part of a strategy to restore balance sheet stability following a spike in the credit-deposit (CD) ratio and a skewed funding mix after HDFC's Rs 6 lakh crore loan book was absorbed.
Although HDFC Bank gained in market share and balance sheet size, its contribution to incremental credit growth remained limited, affecting the broader banking system's performance.
In a call with analysts on July 19, HDFC Bank MD & CEO Sashidhar Jagdishan said, "We slowed down our average advances or AUM growth to about 7% last year, in alignment with our strategic objectives to bring down the CD ratio from 110% at the time of the merger to about 95% as we speak today.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Emergency Generators in Duong Au Co: (Prices May Surprise You)
Emergency Generator | Search Ads
Search Now
Undo
This rate of growth in AUM has improved to 8% in the June 2025 quarter."
The home loan portfolio, which was HDFC's core strength, grew only 7% year-on-year, slower than 9% industry growth, reflecting weak momentum after the merger. Jagdishan said the mortgage segment has seen "intense competition" particularly from public sector enterprises offering rates around 7.1% to 7.3%. HDFC Bank has chosen not to match those rates, focusing instead on pricing loans 50-80 basis points higher while offering better service and targeting broader customer relationships.
The bank expects consumption to recover in both urban and rural areas, supported by the festival season. Jagdishan said sentiment, lower rates, and fiscal incentives could drive growth. He also pointed to rising momentum in the MSME segment, helped by early exports aimed at benefiting from potential tariff changes.
On staffing, the bank added about 4,000 employees this quarter, largely to support branches. Jagdishan said the bank is working towards having "more and more people customer-facing and maybe revenue-generating" as part of its long-term direction.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Centre approves Aqua Line extension to Bodaki MMTH, project to be completed in 3 years
Centre approves Aqua Line extension to Bodaki MMTH, project to be completed in 3 years

Hans India

time28 minutes ago

  • Hans India

Centre approves Aqua Line extension to Bodaki MMTH, project to be completed in 3 years

Noida: In a major boost for urban connectivity in the NCR region, the Central government has approved the extension of the Noida Metro's Aqua Line from Depot Station to the upcoming Multimodal Transport Hub (MMTH) at Bodaki. The project is slated to be completed in three years. The Detailed Project Report (DPR) for the extension was earlier cleared by the Uttar Pradesh Cabinet. With the Centre's nod, the Noida Metro Rail Corporation (NMRC) will now proceed with construction. The proposed 2.6 km extension will include three stations -- the existing Depot Station, and two new stations at Junpat Village and Bodaki. The Bodaki MMTH is being developed as a major transit hub, integrating an interstate bus terminal (ISBT), railway station, and local bus stand -- aimed at strengthening multi-modal connectivity across the region. The project will use standard gauge (1,435 mm) tracks and a 25 kV AC overhead traction system, supported by SCADA controls. A topographical survey has already been completed, and geotechnical investigations are underway. The total cost of the project is estimated at Rs 416.34 crore. It will be implemented by the NMRC through a Special Purpose Vehicle (SPV) structure. The funding model includes 20 per cent contribution from the Central government (Rs 70.59 crore); 24 per cent from the UP government (Rs 91.08 crore); 60 per cent from domestic loans/NCR Planning Board (Rs 211.80 crore); PPP and land components (Rs 10.44 crore + land cost). The revised DPR for the Aqua Line extension from Sector-51 (Noida) to Knowledge Park V (Greater Noida) was approved by the UP government on November 29 last year and later forwarded to the Centre. It was presented in the 94th meeting of the Network Planning Group (NPG) and has received in-principle approval. It will now proceed to the Public Investment Board (PIB) for final clearance. Another DPR -- for a new corridor between Sector-142 and Botanical Garden in Noida -- was approved by the state government on June 28, 2024, and sent to the Union Ministry of Housing and Urban Affairs on July 2. It was reviewed in the 90th NPG meeting and has also received an in-principle recommendation.

Realme 15 Pro launched: Top specs, key features, price in India, and everything else to know
Realme 15 Pro launched: Top specs, key features, price in India, and everything else to know

India Today

time28 minutes ago

  • India Today

Realme 15 Pro launched: Top specs, key features, price in India, and everything else to know

Realme has officially launched the Realme 15 Pro in India, alongside the standard Realme 15. The company is focusing on a combination of sleek design, powerful AI features, and a massive battery. What makes the Realme 15 Pro stand out is its ability to pack a 7,000mAh battery into a slim 7.69mm frame, which is uncommon in smartphones today. The phone will be available in three colour options: Velvet Green, Silk Purple, and Flowing Silver. The open sales start on July 30 at 12 PM IST. Here is everything you need to know. advertisement Read More Realme 15 series: India prices, sale offers The Realme 15 Pro is available in multiple variants. The 8GB RAM + 128GB storage model is priced at Rs 28,999, whereas the 8GB RAM + 256GB storage model will cost you Rs 30,999. The 12GB RAM + 256GB storage will go on sale at Rs 32,999. These prices already factor in a launch offer of Rs 3,000 off through select bank cards. Realme 15: Top specs -Display: It features a 6.8-inch curved AMOLED panel with 144Hz refresh rate and 6,500nits peak brightness. -Chipset: It is powered by a Snapdragon 7 Gen 4 chipset. -Rear camera: One will see two 50-megapixel sensors at the back. -Front camera: There is a 50-megapixel camera with 4K 60fps video support. -Battery: It has a 7,000mAh battery under the hood with 80W fast charging. Realme 15: Key features advertisement The Realme 15 Pro is among the slimmest phones to feature a 7,000mAh battery, made possible through a new graphite-based single-cell battery tech. This allows higher energy density and more efficient power management, while keeping the weight to 187 grams. The company claims up to 83 hours of music playback or 22 hours of video streaming on a full charge. On the software front, Realme is pushing AI-driven features like AI Edit Genie, which allows voice-guided photo editing, and MagicGlow 2.0 to brighten low-light photos without loss in detail. AI also improves gaming with smarter frame rate management and cooling efficiency. The Realme 15 Pro also comes with IP69 water and dust resistance and Gorilla Glass protection. Despite the high-end specs and battery capacity, the design remains slim and lightweight, something Realme is heavily promoting. It is also the first phone in India to feature Qualcomm's Snapdragon 7 Gen 4 chipset, which can offer performance close to Snapdragon 8s Gen 3. - Ends Published By: Ankita Garg Published On: Jul 24, 2025

India, UK firm up defence industrial roadmap
India, UK firm up defence industrial roadmap

Time of India

time42 minutes ago

  • Time of India

India, UK firm up defence industrial roadmap

India and the UK on Thursday firmed up a defence industrial roadmap for co-development and co-production of key defence products and platforms in sync with their overall strategic ties. The roadmap was finalised following wide-ranging talks between Prime Minister Narendra Modi and his British counterpart Keir Starmer. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare PGDM Artificial Intelligence Leadership Cybersecurity Product Management Finance MCA Design Thinking MBA Others Data Science Digital Marketing Data Analytics Technology others Public Policy Healthcare Degree CXO Data Science Project Management Operations Management Management Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details The two leaders welcomed the finalisation of a defence industrial roadmap to promote collaboration in co-design, co-development and co-production of defence products to meet the growing demand in both countries as well as for the world market, an Indian readout said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mountain Gear for Extreme Conditions Trek Kit India Learn More Undo Modi and Starmer also expressed satisfaction at the deepening defence and security partnership between two countries. There has been an upswing in India-UK defence ties in the last few years. Live Events In October 2021, the UK's Carrier Strike Group (CSG) visited India and held India-UK tri-service exercise Exercise Konkan Shakti. The UK Carrier Strike Group will do a port call in Mumbai in October as well. In November last, both sides firmed up a statement of intent (SoI) indicating resolve to strengthen cooperation in electric propulsion. The two sides are also looking at the possibile cooperation in production of jet engines. In their talks, Modi and Starmer also deliberated on the overall situation in the Indo-Pacific. "We have continued to share our perspectives on peace and stability in the Indo-Pacific, the ongoing conflict in Ukraine, and the situation in West Asia," Modi said. "We support early restoration of peace and stability. Respect for sovereignty and territorial integrity of all countries is essential. Today's era demands development, not expansionism," he said. The two leaders expressed satisfaction at the growing collaboration in new and emerging technologies and called for accelerated implementation of the Technology and Security Initiative (TSI). The TSI, firmed up last year, focuses on telecom, critical minerals, artificial intelligence, biotechnology and health technology, semiconductors, advanced materials and quantum.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store