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    Ravi Purohit • Spark Capital Advisors

    Ravi Purohit's questions to HDFC Bank Ltd (HDB) leadership

    Ravi Purohit's questions to HDFC Bank Ltd (HDB) leadership • Q1 2025

    Question

    Ravi Purohit asked about the repayment path for borrowings given recent reductions, the status of former HDFC Limited corporate deposits, and the reasons for deviations from the initial EPS accretion guidance post-merger.

    Answer

    CFO Srinivasan Vaidyanathan confirmed that pricey corporate deposits from the former HDFC Ltd. were intentionally run down. He explained the recent INR 600 billion borrowing reduction included both scheduled maturities and opportunistic repayments. He also stated that the initial EPS accretion guidance was based on different economic and regulatory conditions, but noted the current EPS is stable and comparable to pre-merger levels.

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    Ravi Purohit's questions to HDFC Bank Ltd (HDB) leadership • Q1 2025

    Question

    Ravi Purohit asked for details on the repayment path for legacy HDFC Limited borrowings, whether the run-off of HDFC Ltd.'s corporate deposits impacted overall deposit trends, and for clarification on why the initial 'EPS accretive from day 1' merger guidance did not fully materialize.

    Answer

    CFO Srinivasan Vaidyanathan confirmed that pricey legacy HDFC Ltd. corporate deposits were intentionally run down. On borrowings, he noted a INR 600 billion reduction in the quarter from maturities and prepayments. Regarding the EPS guidance, he explained that economic conditions and regulatory forbearances have changed since the merger announcement, but highlighted that the current EPS of 21.3 is very close to the pre-merger EPS of 21.4.

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