HDFC Bank will be prioritizing profitable growth without sacrificing its asset quality, and is looking at a different liability profile after the merger of HDFC Limited into the bank, Managing Director and Chief Executive Officer Sashidhar Jagdishan wrote in his address to the shareholders in the annual report released on July 18.
Branch Additions
CEO Jagdishan said the bank has added over 900 branches in the year gone by, and will continue to add more this financial year. "These phygital branches are our investments. They will undoubtedly help garner deposits in the future," he added. The older bank branches will act as 'engines of deposit mobilisation', HDFC Bank CEO said.
Deposit Growth
The bank is looking at a different liability profile after the merger, CEO said, adding that it will continue to focus on granular deposit mobilisation, with growth in advances slightly slower than deposit growth.
Tech Upgrade
The core banking systems are being reinforced, CEO said, and the bank is moving towards improved resilience and scale. The bank has scaled up systems to accommodate branch expansion and increasing the hardware and infrastructure capacity. A new platform for retail assets and microfinance is being deployed for greater resilience, he said.
Attrition
During the last financial year, the banking industry saw a slight moderation in the attrition rate, which reflected in HDFC Bank's numbers too. CEO Jagdishan said the bank has taken several steps to arrest attrition,
and set up a task force to identify causes.
Economic Landscape
India is teeming with opportunities, the CEO said, adding he feels 'fortunate to be a part of the Indian economy'.
"The economic activity is likely to be supported by further pick-up in private capital expenditure and continued Government capital spending", CEO Jagdishan added.
Post merger
Jagdishan added that post merger of the bank with its parent company HDFC Ltd, the bank has to be seen differently. "HDFC 2.0 that has to be seen differently, and comparing with the past in terms of metrics would not be
the right way. The merger has presented the Bank with a massive opportunity which we’re working to seize," he said.
Additionally, the merger has seamlessly been completed seamlessly and efficiently across all dimensions of the business, said Atanu Chakraborty, Part-time Chairman and Independent Director, HDFC Bank.
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