HDFC Bank Gears Up for Aggressive Growth in FY26 Post-Merger, Led by CEO Jagdishan
Lucknow– HDFC Bank is poised for a phase of aggressive growth in the fiscal year 2026, following a period of consolidation in FY25 after its significant merger, announced MD & CEO Sashidhar Jagdishan. In his first comprehensive communication to shareholders since the landmark merger, Jagdishan articulated that FY25 was dedicated to “laying the groundwork,” and the bank is now primed to pursue “out-sized growth opportunities.”
Jagdishan characterized FY25 as a pivotal year for the newly merged entity, marked by resilience, disciplined integration, and strategic recalibration. With the consolidation successfully completed, HDFC Bank is ready to substantially scale its operations, bolstered by a robust balance sheet, favorable macroeconomic conditions, and a refined strategy. “We spent FY25 fortifying our base. Now, we’re entering our most transformative phase yet,” Jagdishan stated.
Despite a global economic slowdown and moderated GDP growth, India’s economic fortitude, supported by structural reforms and policy initiatives, provided a conducive environment for the bank’s growth. HDFC Bank effectively leveraged this scenario, capturing an impressive 11% of system-wide deposits with only 5% of the country’s branch network, highlighting its operational efficiency and extensive customer reach.
Key Performance Highlights from FY25:
- Deposits surged by 14.1%, significantly outpacing loan growth by 2.5 times.
- The bank accounted for 14.6% of incremental deposit accretion across the banking system.
- The Credit-deposit ratio improved to 96%, indicating a stronger alignment between assets and liabilities.
- High-cost borrowings were reduced to 14%, reflecting prudent capital management.
These metrics, according to Jagdishan, signify not merely a recovery but a clear readiness for accelerated expansion.
Emphasis on Technology and Generative AI (GenAI):

Beyond financial performance, HDFC Bank is making substantial investments in technology and innovation. Jagdishan views Generative AI as potentially as disruptive and transformative as the internet or mobile revolutions. He underscored that, when implemented responsibly, GenAI will facilitate faster innovation, smarter operations, and deeper customer engagement.
To spearhead this technological transformation, HDFC Bank has:
- Initiated 15 structured GenAI programs.
- Established a centralized academy to cultivate internal capabilities.
- Adopted a platform-based approach to ensure scalability and security.
“GenAI, with the right safeguards, is not just a tech leap—it’s a strategic accelerator,” Jagdishan emphasized.
The Path Forward:
With the integration challenges largely behind it and a sharpened focus on digital innovation, HDFC Bank believes it is uniquely positioned to drive sustainable, high-impact growth in FY26 and beyond. The leadership remains committed to disciplined expansion, leveraging both its scale and intelligence to unlock long-term shareholder value.
As India’s largest private sector lender transitions from consolidation to acceleration, HDFC Bank is set to redefine its role in the evolving landscape of Indian banking.