Mahrukh Adajania's questions to HDFC BANK (HDB) leadership • Q2 2026
Question
Mahrukh Adajania inquired about the strong NPL recoveries, asking if they were due to an improved environment or a one-off event. She also questioned if the bank's exit margin guidance remained on track and how the Loan-to-Deposit Ratio (LDR) would evolve given recent deposit and loan growth trends.
Answer
Srinivasan Vaidyanathan (CFO) clarified that a significant portion of the NPL improvement was a one-off upgrade, contributing approximately 10 basis points, and that contingent provisions were increased by INR 1,600 crore. Regarding margins, he explained that asset yields had largely repriced, while cost of funds would see further improvement over the next 4-5 quarters, making the bank optimistic about exit margins in a stable rate scenario. For LDR, he stated the strategic objective is to bring it below 90% from 96%, with the direction of travel being more important than quarter-to-quarter linearity.