HDFC Bank's Chairman Emphasizes Zero Tolerance Towards Unethical Practices, Expects Growth

The HDFC Bank board will ensure that control functions remain fully empowered to have zero tolerance towards any unethical practice, which will be dealt with speed and firmness on a case-to-case basis, Rajiv Kumar, newly appointed part-time chairman, said on Wednesday. Addressing shareholders at the bank’s 32nd annual general meeting, Kumar reiterated that there were no systemic governance concerns at the bank. “The board is committed to ensure that HDFC Bank operates from the pedestal of highest levels of corporate governance and remain anchored in integrity, transparency, accountability, and prudent stewardship .” “The bank’s ethos and internal control systems are strong. I assure you that this will be further strengthened and empowered,” he added. Kumar, who took charge as chairman in July this year after Atanu Chakraborty resigned with immediate effect citing governance issues, said large institutions like HDFC Bank may encounter some issues from time to time. “It is important that these issues are addressed in a timely and transparent manner,” he said. Kumar said HDFC Bank is confident of growing its advances faster than the banking system and expects its net interest margin (NIM) and current account-savings account (CASA) ratio to improve over the next two-to-three years. He said HDFC Bank was “at the cusp of a change” as technology modernisation, an expanded distribution network and synergies from the merger with HDFC begin to translate into stronger business momentum. “The merger has resulted in a structural change in our balance sheet, primarily in the CASA ratio and our NIMs,” he said. “As we continue our progress on incremental deposit market share and with stepped up focus on consumption side of the economy, we are confident of improving these metrics over the next 2 to 3 years,” he added. He said that the cumulative repo rate cuts of 125 basis points between February and December 2025 affected NIMs, as assets repriced faster than deposits. HDFC Bank’s advances grew 12.1% in FY26, compared with 5.4% in the previous year, while deposits rose 14.4%, outpacing the system’s 11.5% growth. The bank’s advances stood at Rs 29.37 lakh crore and deposits at Rs 31.05 lakh crore at the end of FY26. Kumar said the bank had started growing advances in line with the system and was confident of beating system growth in the periods to come. Its profit after tax rose 10.9% to Rs 74,671.3 crore in FY26. He also highlighted the merger with HDFC as a key opportunity to deepen customer relationships. More than 95% of new-to-bank home loan customers now open savings accounts with HDFC Bank, he said, allowing the lender to cross-sell investments, protection and other financial products. Kumar also said that the bank was modernising its core technology stack, building in-house engineering capabilities and embedding generative AI across the organisation through its ‘Neev’ platform.