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    Rikin Shah • IIFL Securities Ltd.

    Rikin Shah's questions to HDFC Bank Ltd (HDB) leadership

    Rikin Shah's questions to HDFC Bank Ltd (HDB) leadership • Q1 2026

    Question

    Rikin Shah from IIFL Securities Limited inquired about the recent regrouping of CRB loan classifications, the NPL recognition policy for one-time settlements with standard customers, and the expected trajectory of credit costs.

    Answer

    CFO Srinivasan Vaidyanathan explained the portfolio reclassifications and stated that the NPL recognition policy for settlements adheres to RBI norms, which typically results in a classification downgrade. He noted that while credit costs remain benign, they are seasonally higher in June and December due to the agricultural portfolio and are expected to revert to the mean over the long term.

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    Rikin Shah's questions to HDFC Bank Ltd (HDB) leadership • Q1 2026

    Question

    Rikin Shah from IIFL Securities Limited asked for clarification on the regrouping of the CRB loan portfolio, the bank's NPL recognition policy for one-time settlements with standard customers, and the expected trajectory for credit costs, which saw a slight increase.

    Answer

    Chief Financial Officer Srinivasan Vaidyanathan detailed the portfolio reclassifications, noting moves between corporate and retail segments without ground-level staff changes. He confirmed that the bank follows RBI norms, where a one-time settlement typically leads to an NPL recognition. Regarding credit costs, he stated they remain benign but acknowledged a seasonal elevation in June and December due to the agricultural portfolio, expecting an eventual, though not imminent, reversion to the mean.

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    Rikin Shah's questions to HDFC Bank Ltd (HDB) leadership • Q4 2025

    Question

    Rikin Shah asked about the repricing lag for repo-linked loans following a rate change and whether the number of days in a quarter affects reported margins. He also sought to clarify if there was a reversal of Alternative Investment Fund (AIF) provisions during the quarter.

    Answer

    CFO Srinivasan Vaidyanathan explained that repo-linked loans reprice at different intervals by product, but most reprice within one to three months. He confirmed the number of days can have a minor impact of a couple of basis points on margins. On AIF provisions, he stated there was no significant reversal that impacted the P&L, as the reduction in the provision stock was absorbed by other provisioning needs.

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    Rikin Shah's questions to HDFC Bank Ltd (HDB) leadership • Q4 2025

    Question

    Rikin Shah of IIFL Securities sought clarification on the repricing timeline for repo-linked loans, the impact of the number of days in a quarter on margins, and whether there was a reversal of provisions for Alternative Investment Funds (AIF) in the quarter.

    Answer

    Executive Srinivasan Vaidyanathan clarified that repo-linked loans reprice based on individual contract cycles, with most repricing within a month or a quarter. He confirmed the number of days can have a minor impact of a couple of basis points on margins. Regarding AIF provisions, he stated there was no significant reversal that impacted the P&L. While the provision stock decreased from ~₹350 crores to ~₹288 crores as some investments matured, the benefit was absorbed by other provisioning needs and did not flow to the bottom line.

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    Rikin Shah's questions to HDFCBANK leadership

    Rikin Shah's questions to HDFCBANK leadership • Q2 2025

    Question

    Rikin Shah noted the generation of excess liquidity due to the faster normalization of the LDR and asked why the bank did not prepay bond borrowings this quarter, as it has in the past. He inquired if prepayment optionality still exists for the coming quarters.

    Answer

    CEO Sashidhar Jagdishan responded that the effort to prepay borrowings continues, but it is challenging as a large portion of the inherited HDFC Ltd. borrowings are non-callable and require negotiation. He explained that the bank is also choosing to maintain an adequate liquidity cushion to manage uncertainties around deposit sustainability and upcoming draft regulatory guidelines. However, he affirmed that if an opportunity to prepay arises without compromising this liquidity cushion, the bank will take it.

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