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CFO Srinivasan Vaidyanathan clarified that the expectation of credit costs reverting to the mean is a long-term statistical view, not a reflection of any foreseeable stress. CEO Sashidhar Jagdishan stated it is difficult to gauge competitor rate actions on fixed-rate loans but anticipates competitive intensity will increase during the upcoming festive season.

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Chief Financial Officer Srinivasan Vaidyanathan clarified that the 'reversion to mean' for credit costs is a statistical expectation for the industry over time and not based on any foreseeable stress in HDFC Bank's portfolio, which remains strong. MD & CEO Sashidhar Jagdishan added that it is difficult to quantify competitor rate cuts, noting that such competitive intensity typically increases during the festive season rather than in the slower first quarter.

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CFO Srinivasan Vaidyanathan responded that the bank has not made broad cuts to fixed lending rates but continues to use a consistent risk-based pricing model. Regarding the unsecured book, he explained that about 75-80% of the ~INR 2 trillion personal loan portfolio consists of salaried customers. He confirmed that the bank has not experienced any stress in this book, and its performance remains strong across various customer segments.

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Executive Srinivasan Vaidyanathan responded that the bank has not implemented broad rate cuts on fixed-rate products but continues to use its consistent, risk-based pricing model. On the unsecured book, he detailed that personal loans of nearly ₹2 trillion are predominantly (75-80%) to salaried customers. He stated that the bank has not experienced any stress in this portfolio, which performs well across various customer segments, and that these loans are offered through multiple channels to individuals, proprietors, and merchants as part of a broader relationship strategy.

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Anindya Banerjee, Group CFO, reiterated that the Q1 NIM calculation change had a negligible impact. He clarified that the bank was running off past, higher-cost wholesale deposits, not currently cheaper ones. He attributed the slow vehicle loan growth to both a slowdown in the underlying asset class and persistent price competition.

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Anindya Banerjee, Group CFO, clarified that the Q1 margin calculation change had a negligible impact and the drop was driven by rate cuts and tax refunds. He explained that the reduction in wholesale deposits was a function of managing overall liquidity and letting older, higher-cost deposits run off. For vehicle loans, he cited both intense price competition and slower underlying asset growth as contributing factors.

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Executive Anindya Banerjee reiterated that CASA pressure should logically ease due to monetary policy and liquidity improvements. He attributed the vehicle loan slowdown to underlying demand and marginal pricing factors, not asset quality concerns. The rise in deposit costs was partly due to the number of days in the quarter. He confirmed the builder portfolio includes a reasonable, though undisclosed, component of Lease Rental Discounting (LRD).

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Executive Anindya Banerjee explained that while some cost pass-through occurred in FY22-23, further increases are constrained by intense competition, especially in corporate and mortgage lending. He agreed that the banking sector's broad focus on the prime customer segment, where pricing is very competitive, is a key factor influencing overall yields.

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Anindya Banerjee, Executive Director, stated that the bank is open to corporate loan opportunities that meet its risk-reward criteria but has been less competitive on pricing in some areas. He explained that slower fee income growth was seasonal after a strong festive Q3 and not a strategic trade-off with yields. He clarified that sourcing cost optimization was a broad-based effort across categories, not just personal loans, contributing to OpEx moderation.

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