HDFC Bank Aims to Outpace Industry Advances Growth in FY27, Gains 14.6% Share of Incremental Deposits.

HDFC Bank aims to grow advances faster than the industry in FY27, with a 14.6% share of incremental deposits. Despite having only 5% of branches, the bank has nearly 11% of total deposits. HDFC Bank added over 700 branches last fiscal year, taking it to 9,455 branches, with over half present in semi-urban and rural areas. The bank plans to implement GenAI for innovation and resilience, with over 15 lighthouse programs identified.

HDFC Bank, one of India's largest private sector lenders, is aiming to grow its advances at a faster pace than the industry in FY27. The bank has already secured a 14.6% share of incremental deposits in FY25, a significant milestone that underscores its growth trajectory [1].

Despite having only 5% of the branches in the industry, HDFC Bank holds nearly 11% of the total deposits. This impressive feat is a testament to the bank's efficient deposit mobilization strategies. In FY25, the bank added over 700 branches, bringing its total to 9,455 branches as of March 31, 2025. Over half of these new branches are located in semi-urban and rural areas, indicating the bank's commitment to expanding its reach [1].

HDFC Bank's strategy for growth includes leveraging advanced technologies such as GenAI. The bank has identified over 15 lighthouse programs that will be implemented with the help of GenAI to drive innovation and resilience. These initiatives aim to address customer issues proactively, thereby reducing instances of customer dissatisfaction [1].

The bank's managing director and CEO, Sashidhar Jagdishan, expressed confidence in the bank's ability to grow its advances in line with the industry in FY26 and faster than the industry in FY27. He also highlighted the successful navigation of the merger with HDFC Ltd, which has positioned the bank for faster growth [1].

The merger has also led to a reduction in the credit-deposit ratio, further strengthening the bank's financial health. The bank's strong deposit growth, coupled with the merger synergies, has created a robust foundation for future growth [2].

HDFC Bank's aggressive branch expansion strategy is in line with the directives from the Union finance ministry, which has asked public sector banks (PSBs) to compete with private sector banks by expanding their branch networks. The ministry's emphasis on a 'phygital' approach, blending physical and digital services, aligns with HDFC Bank's strategy [3].

In conclusion, HDFC Bank's strategic focus on technology, branch expansion, and efficient deposit mobilization positions it well for industry-leading growth in FY27. The bank's proactive approach to customer issues and its commitment to a balanced phygital strategy are likely to drive its continued success.

References:
[1] https://m.economictimes.com/industry/banking/finance/banking/hdfc-bank-aims-to-grow-advances-faster-then-industry-in-fy27-has-14-6-share-of-incremental-deposits/articleshow/122445140.cms
[2] https://www.business-standard.com/finance/news/hdfc-bank-lower-cd-ratio-strong-deposit-growth-jagdishan-125071400793_1.html
[3] https://m.rediff.com/news/commentary/2025/jul/11/finmin-pushes-psbs-to-expand-branches/8bd2e120c2c5e95f8920529b439a8712