HDFC Bank reduced high cost borrowing share to 14% in FY25, says CEO Sashidhar Jagdishan

HDFC Bank

The percentage of high cost borrowings of the HDFC Bank has come down to 14 percent at the end of financial year 2024-25, chief executive officer and managing director Sashidhar Jagdishan said in an annual report.

“As stated we have taken affirmative steps to bring down the credit to deposit ratio and reduce the percentage of high cost borrowings,” Jagdishan said.

According to the investor, the total borrowing of the bank stood at Rs 5.47 lakh crore as on March 31, 2025, as compared to Rs 6.62 lakh crore as on March 31, 2024.

Jagdishan also said that RBI has reduced its policy rate by 100 basis points (Bps) since February 2025, bringing it to 5.5 per cent. This, along with liquidity infusion, is likely to help reduce borrowing costs and spur credit demand in the economy.

Further, he added that of the HDFC Ltd’s borrowings of Rs 2,87,923 crore as at March 31, 2025, approximately 15 per cent is due for repayment in each of the two years up to FY27 and the balance 70 per cent is due thereafter.

The bank has a market share of 11 per cent of banking deposits. The lender garnered an incremental deposit market share of approximately 14.6 per cent in the last financial year. Aggression has been in intent and execution, but not in pricing, be it for assets or for liabilities, Jagdishan added.

The successful playing out of the merger synergies, the reduction in the credit deposit ratio and the large scale mobilisation of deposits, all constitute tailwinds for the bank, said Jagdishan.