India’s largest private sector lender HDFC Bank has indicated a measured outlook for FY27, citing geopolitical uncertainties, even as it aims to sustain the growth momentum achieved in FY26.
The bank reported 12% year-on-year credit growth in FY26, a significant improvement over 5.4% growth in FY25, although slightly below its earlier guidance of matching system wide credit growth.
Managing Director and CEO Sashidhar Jagdishan said the bank remains focused on “responsible growth”, avoiding excessive expansion that could create future risks.
Deputy MD Kaizad Bharucha added that while growth momentum is expected to continue, the bank will remain cautious given evolving geopolitical conditions and their potential impact on demand.
On the corporate lending side, HDFC Bank expects steady growth supported by demand across sectors such as electronics, food processing, automobiles, renewable energy, and semiconductors, along with opportunities in project finance, supply chain financing, and acquisition financing.
Retail lending also showed improvement, with broad based growth across vehicle loans, personal loans, and business loans, while demand in the mortgage segment remained stable.
The bank clarified that it is not overly focused on the credit deposit (CD) ratio, aligning instead with regulatory emphasis on liquidity metrics such as LCR and NSFR highlighted by the Reserve Bank of India.
Separately, Jagdishan expressed support for Keki Mistry continuing as part time chairman, following the resignation of Atanu Chakraborty.
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