Pranav Gundlapalle's questions to HDFCBANK leadership • Q2 2025
Question
Pranav Gundlapalle questioned the bank's loan yields, asking if they are still higher than peers, as they have been historically, or if the conservative underwriting stance is resulting in incrementally lower yields compared to the competition.
Answer
CFO Srinivasan Vaidyanathan provided a segmented view. He stated that in mortgages, HDFC Bank's rates are similar to private peers but face a ~50 basis point differential from legacy public sector banks. In commercial and rural banking, he noted that demand is highly price-elastic, limiting their ability to raise rates. For large corporate loans, he explained that loan spreads are not keeping pace with rising bond spreads, leading the bank to moderate growth in that segment rather than compromise on pricing for the entire credit life cycle.