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- **Economic Momentum**: Domestic economy strengthens on fiscal and monetary measures, driving loan growth and market share gains.
- **NIM Outlook**: NIM compression (8 bps) expected to reverse as deposit repricing gains traction over 6-12 months.
- **AI and Tech Investment**: Strategic focus on AI experiments and core platform upgrades to enhance customer experience.
- **Capital Strength**: CET1 ratio maintained above thresholds, with capital for 3-4 years of growth without raises.
- **Home Loan Success**: 2-3 day turnaround time, 98% savings account upsell, and 14% credit card penetration.
- **SME Recovery**: Healthy credit demand and stable asset quality in SME segment.
- **Cross-Border Opportunities**: Potential to participate in cross-border M&A as RBI guidelines evolve.

**【CEO Summary Section】**
- Domestic economy shows strength due to fiscal and monetary measures, including tax reductions and interest rate cuts, driving economic activity.
- Loan growth accelerated across segments, with market share gains in deposits.
- NIM compressed by 8 bps due to front-loaded asset repricing, but deposit repricing expected to provide tailwind over 6-12 months.
- Investing in AI and core technology platforms to improve customer experience and operational efficiency.
- Asset quality remains healthy, with NPA at 1.24% and no significant issues in early indicators.

**【CFO Financial Commentary】**
- Recoveries and upgrades contributed to a 10 bps reduction in NPA, with contingent provisions increased by INR 1.6 billion.
- Margins expected to stabilize with a positive bias as deposit repricing impacts NIMs.
- LDR target is to reduce below 90% over time, with strategic focus on disciplined pricing.
- Capital management maintains CET1 ratio above regulatory thresholds, with plans for 3-4 years of growth without additional capital raises.
- Fee income grew 9% YoY, driven by consistent product performance.

**【Q&A Highlights】**
- **Margins and Repricing**: Asset-side repricing largely complete, while deposit repricing will take 6+ quarters. Cost of funds improved 18 bps QoQ, with further declines expected.
- **LDR and Growth**: LDR rose due to strong credit demand, but strategic focus on growing faster than the system from FY '27.
- **Capital Utilization**: Extra capital from regulatory changes will support growth, with potential shareholder returns if opportunities arise.
- **Home Loans**: Turnaround time reduced to 2-3 days, with upsell penetration in savings accounts (98%), credit cards (14%), and consumer durables (mid-30s).
- **SME Growth**: Healthy credit demand and stable asset quality in SME segment.
- **Cross-Border M&A**: RBI guidelines may open opportunities for banks to participate in cross-border transactions, pending final guidelines.


HDFC Bank Limited (HDB) Q2 2026 Earnings Call Transcript

- **Macroeconomic Resilience**: RBI rate cuts and accommodative stance support India's GDP growth, with HDFC Bank well-positioned for rural and corporate recovery.
- **Financial Stability**: NIM maintained at 3.44-3.46% through disciplined deposit management; ROA sustained at 1.8% with long-term stability in 1.9-2.1% range.
- **Strategic Reorganization**: CRB shift to retail-led agriculture lending aims to enhance customer engagement and productivity.
- **Deposit Growth**: 15.8% YoY expansion driven by retail focus; CASA ratio expected gradual improvement with rate cuts.
- **Credit Quality**: Pristine asset quality maintained with risk-based pricing, no loosening of standards despite competitive lending environment.

**【CEO Opening Remarks】**
- Highlighted India's macroeconomic resilience with RBI rate cuts (200 bps) and accommodative stance, supporting GDP growth through rural spending and corporate investment.
- Bank's credit-deposit ratio (CDR) reduced to 96% from 110% post-merger, with gradual further adjustment in FY26 to support loan growth.
- Emphasized cost control, pristine asset quality, and technology-driven growth opportunities.

**【CFO Financial Commentary】**
- Net Interest Margin (NIM) stable at 3.44-3.46% YoY, driven by stable cost of funds (4.9%) and disciplined deposit mix management.
- Deposit growth of 15.8% YoY (INR3.4 trillion) outpaced system growth, with CASA ratio maintained despite time deposit preference.
- Return on Average Assets (ROA) sustained at 1.8%, targeting long-term stability within 1.9-2.1% range.

**【Q&A Highlights】**
- **NIM Drivers**: Stable yield on assets (8.3-8.4%) offset repo rate cuts; cost of funds controlled via retail deposit focus.
- **Deposit Strategy**: Short-term corporate deposits used for liquidity, not lending; CASA ratio expected gradual improvement with rate cuts.
- **CRB Reorganization**: Shifted agriculture lending to retail team to leverage synergies with auto and gold loans, aiming for higher wallet share.
- **ROA Sustainability**: Long-term stability expected despite near-term volatility; cost efficiency and balance sheet growth to drive returns.
- **Credit Growth**: SME and retail lending prioritized, with risk-based pricing maintaining margins; no loosening of credit standards.

HDFC Bank Limited (HDB) Q4 2025 Earnings Conference Call Transcript

- **Deposit Dominance**: 16% YoY growth vs 8% loans, CASA at 40.5% despite TD surge, positioning for recovery.
- **Credit Resilience**: Stable NPA ratio, 71% PCR ex-agri, and 380bps NIM spread vs peers.
- **Cost Efficiency**: 7% YoY expense growth vs 5-6% inflation, 10%+ tech spend driving productivity.
- **PSL Progress**: 40%+ target met, 1.9mn liability relationships post-merger, 1ppt SMF shortfall to resolve.
- **Liquidity Management**: 6.5-7% yield on INR 500bn investments, 8% borrowing cost with active bond buybacks.

**【CEO Opening Remarks】**
- Highlighted macro challenges: tight liquidity, moderating urban demand, currency volatility, but noted rural demand pickup and government spending acceleration.
- Bank performance: deposit growth outpaced loans (16% vs 8% YoY), maintaining stable NIM amid tight pricing.
- Credit strength: stable slippages, gross NPA ratio unchanged, demonstrating institutional resilience.
- Future positioning: comfortable liquidity, capital adequacy, and deposit growth to capture market share when macro improves.

**【CFO Financial Highlights】**
- Deposit growth: 16% YoY, outpacing system, with CASA at 40.5% despite higher TD growth (22.7% QoQ).
- Expense control: 7% YoY cost growth vs 5-6% inflation, driven by tight branch and tech investments.
- Liquidity management: ~INR 500bn invested at 6.5-7% yield, borrowing cost ~8% with opportunistic bond buybacks.
- Contingent provisions: released INR 3bn from a performing wholesale account recovery.

**【Key Q&A Themes】**
1. **PSL Compliance**: Met 40%+ target organically and via PSLC purchases, with ~1ppt shortfall in SMF/weaker sections to resolve by FY25 end.
2. **PCR Stability**: Ex-agri PCR at 71%, stable vs prior quarter, reflecting strong credit monitoring.
3. **Merger Synergies**: 96%+ new mortgage customers opening liability accounts, 1.9mn total liability relationships, but CASA tradeoff vs market share growth.
4. **Agri Book**: Seasonal Q3 slippages (15bps NPA), but stable asset quality with 5% microfinance book growth.
5. **Cost Growth**: 7.5% YoY vs 5-6% inflation, balanced against tech (10%+ of expenses) and branch expansion (1,052 new branches YoY).

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