Latest news with #Jagdishan
Economic Times
21-07-2025
- Business
- Economic Times
HDFC merger continues to remain a drag on bank credit growth
Synopsis As the banking landscape evolves post-merger, the focus remains on balancing growth while ensuring stability within the financial system. The coming months will be crucial in determining how HDFC Bank navigates these challenges and capitalises on emerging opportunities in the market. ANI The home loan portfolio, traditionally HDFC's core strength, has been particularly affected. The recent merger between HDFC and HDFC Bank has significantly impacted credit growth in the Indian banking sector. In the financial year 2024 (FY24), this merger led to a marked slowdown in bank credit growth, which continued into FY25 and pulled overall industry credit growth down to single digits in the first quarter of FY26. As per data from the Reserve Bank of India (RBI), bank credit growth was recorded at 9.5% at the close of Q1, while deposits showed a healthier growth of 10.1%. In contrast, HDFC Bank's outstanding loans rose by only 6.7%, and its deposits increased by 16.2%.As the banking landscape evolves post-merger, the focus remains on balancing growth while ensuring stability within the financial system. The coming months will be crucial in determining how HDFC Bank navigates these challenges and capitalises on emerging opportunities in the decline in loan growth, which fell from a robust 15-17% before the merger to just 5.4% in FY25, has become a concern for the broader banking merger aimed at restoring balance sheet stability resulted in a spike in the credit-deposit (CD) ratio, which reached 110% post-merger. To counter this, HDFC Bank adopted a strategy to bring the CD ratio down to approximately 95%. HDFC Bank Managing Director and CEO Sashidhar Jagdishan noted that the bank intentionally slowed down its average advances growth to around 7% last year to meet these strategic objectives. However, growth in Assets Under Management (AUM) has reportedly improved to 8% in the June 2025 affected has been the home loan portfolio, traditionally HDFC's core strength. This segment has seen a year-on-year growth of just 7%, lagging behind the industry average of 9%. Jagdishan acknowledged that the mortgage market is facing intense competition, especially from public sector banks offering lower interest rates between 7.1% and 7.3%.Rather than engage in a pricing war, HDFC Bank has opted to price its loans 50-80 basis points higher, focusing on superior service and fostering wider customer ahead, HDFC Bank anticipates a recovery in consumption in both urban and rural markets, aided by the approaching festival season. Factors such as improved sentiment, lower interest rates, and fiscal incentives are expected to drive the bank has noted a positive momentum in the Micro, Small, and Medium Enterprises (MSME) sector, buoyed by early exports aiming to benefit from potential tariff the staffing front, HDFC Bank has hired around 4,000 employees in the latest quarter to bolster its branch operations. Jagdishan highlighted the bank's objective of increasing customer-facing and revenue-generating roles as part of its long-term strategy.
Time of India
21-07-2025
- Business
- Time of India
HDFC merger continues to remain a drag on bank credit growth
The recent merger between HDFC and HDFC Bank has significantly impacted credit growth in the Indian banking sector. In the financial year 2024 (FY24), this merger led to a marked slowdown in bank credit growth , which continued into FY25 and pulled overall industry credit growth down to single digits in the first quarter of FY26. As per data from the Reserve Bank of India (RBI), bank credit growth was recorded at 9.5% at the close of Q1, while deposits showed a healthier growth of 10.1%. In contrast, HDFC Bank's outstanding loans rose by only 6.7%, and its deposits increased by 16.2%. Explore courses from Top Institutes in Select a Course Category Data Science CXO Degree Digital Marketing Artificial Intelligence others Product Management Technology Data Analytics MBA Others Management Design Thinking Cybersecurity Data Science Public Policy Healthcare Project Management MCA Leadership Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details As the banking landscape evolves post-merger, the focus remains on balancing growth while ensuring stability within the financial system. The coming months will be crucial in determining how HDFC Bank navigates these challenges and capitalises on emerging opportunities in the market. This decline in loan growth, which fell from a robust 15-17% before the merger to just 5.4% in FY25, has become a concern for the broader banking system. The merger aimed at restoring balance sheet stability resulted in a spike in the credit-deposit (CD) ratio, which reached 110% post-merger. To counter this, HDFC Bank adopted a strategy to bring the CD ratio down to approximately 95%. Live Events HDFC Bank Managing Director and CEO Sashidhar Jagdishan noted that the bank intentionally slowed down its average advances growth to around 7% last year to meet these strategic objectives. However, growth in Assets Under Management (AUM) has reportedly improved to 8% in the June 2025 quarter. Particularly affected has been the home loan portfolio, traditionally HDFC's core strength. This segment has seen a year-on-year growth of just 7%, lagging behind the industry average of 9%. Jagdishan acknowledged that the mortgage market is facing intense competition, especially from public sector banks offering lower interest rates between 7.1% and 7.3%. Rather than engage in a pricing war, HDFC Bank has opted to price its loans 50-80 basis points higher, focusing on superior service and fostering wider customer relationships. Looking ahead, HDFC Bank anticipates a recovery in consumption in both urban and rural markets, aided by the approaching festival season. Factors such as improved sentiment, lower interest rates, and fiscal incentives are expected to drive growth. Additionally, the bank has noted a positive momentum in the Micro, Small, and Medium Enterprises (MSME) sector, buoyed by early exports aiming to benefit from potential tariff changes. On the staffing front, HDFC Bank has hired around 4,000 employees in the latest quarter to bolster its branch operations. Jagdishan highlighted the bank's objective of increasing customer-facing and revenue-generating roles as part of its long-term strategy.
Time of India
20-07-2025
- Business
- Time of India
HDFC duo's merger still looms over industry's credit growth
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
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Business Standard
18-07-2025
- Business
- Business Standard
Private sector bank chiefs take home hefty compensation cheques in FY25
Public sector banks' chiefs trail far behind, with the chairman of SBI, India's largest lender, earning a fraction of what private sector banks' chief executives make BS Reporter Mumbai Listen to This Article The heads of private sector banks earned hefty compensation in FY25, with HDFC Bank's managing director and chief executive officer (MD and CEO) Sashidhar Jagdishan and Kotak Mahindra Bank's MD and CEO Ashok Vaswani emerging as the top earners. In FY25, Jagdishan of HDFC Bank, India's largest private sector lender, earned ₹12.06 crore, up 12 per cent from last financial year. He has also been allotted 212,052 shares in Employee Stock Options (ESOPs) by the bank in FY25, the bank's annual report for the fiscal year showed. Jagdishan drew a remuneration of ₹10.77 crore in FY24. He was the highest
News18
18-07-2025
- Business
- News18
Private Bank CEOs See 4-12% Hike In FY25 Salaries; Kotak Mahindra Bank CEO Draws Highest Pay
Among private sector peers, HDFC Bank CEO Sashidhar Jagdishan sees the steepest annual hike of 11.96%, with a total pay of Rs 12.08 crore in FY25, excluding employee stock options. Salaries of private sector bank CEOs rose between 4% and 12% year-on-year in the financial year 2024-25, with Kotak Mahindra Bank's new chief executive, Ashok Vaswani, emerging as the highest-paid among them with a total remuneration of Rs 12.95 crore, according to a report by Moneycontrol. Vaswani, who officially took charge on January 1, 2024, drew Rs 1.62 crore for the three-month period in FY24. His predecessor and bank promoter, Uday Kotak, had opted for a token Re 1 salary in FY23. Among private sector peers, HDFC Bank's CEO Sashidhar Jagdishan saw the steepest annual hike of 11.96%, with a total pay of Rs 12.08 crore in FY25, excluding employee stock options. Jagdishan was also granted 2,12,052 ESOPs in the previous fiscal. Notably, he received Rs 2.63 crore in January FY25 as part of the 50% cash variable pay for FY24, out of an RBI-approved total of Rs 5.25 crore, the bank's annual report showed. Axis Bank's CEO Amitabh Chaudhry earned Rs 9.11 crore in FY25, a marginal 0.2% increase from the previous year. He was granted 2,59,429 stock options, lower than 3,13,300 in FY24. At IDFC First Bank, CEO V Vaidyanathan took home Rs 5.55 crore, up 4.53% from Rs 5.30 crore a year earlier. He received 24,20,626 stock options in FY25, compared to 30,59,514 in FY24. According to the Moneycontrol report, these figures exclude full-year variable payouts, which often face delays due to regulatory approval processes. Overall, the average CEO salary hike among private banks stood at 6% in FY25, slightly lower than the 8% increase recorded in FY24. The annual reports for ICICI Bank and Yes Bank were not yet available at the time of publishing the story. Widening Salary Gap with PSU Banks The disparity in compensation between private and public sector bank chiefs remained stark in FY25. As per Moneycontrol, Jagdishan's salary alone was more than double the combined salaries of the top 10 public sector bank heads. The collective remuneration of CEOs at major PSU banks — including SBI, BoB, Canara Bank, PNB, and others — stood at Rs 5.13 crore in FY25, up from Rs 4.46 crore in FY24. PSU bank chiefs earned between Rs 42 lakh and Rs 81 lakh, significantly lower than their private sector counterparts. Bank of Baroda MD & CEO Debadatta Chand was the highest-paid among PSU chiefs, with a salary of Rs 74 lakh, up from Rs 58.70 lakh in FY24. He was followed by Indian Overseas Bank's Ajay Kumar Srivastava at Rs 64.40 lakh, and SBI Chairman Challa Sreenivasulu Setty at Rs 63.87 lakh. CEOs of smaller PSBs like Bank of Maharashtra and Canara Bank earned even less — Rs 37.81 lakh and Rs 42.41 lakh, respectively, in FY25. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
