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    Sameer Bhise • JM Financial

    Sameer Bhise's questions to HDFC Bank Ltd (HDB) leadership

    Sameer Bhise's questions to HDFC Bank Ltd (HDB) leadership • Q1 2025

    Question

    Sameer Bhise asked about the potential for repricing HDFC Limited's borrowings (floating vs. fixed) and inquired about the sequential jump in staff costs.

    Answer

    CFO Srinivasan Vaidyanathan explained that the inherited borrowings are a mix of fixed and floating rates, with hedges on much of the fixed portion, and are reviewed monthly by the ALCO for optimization. He clarified that the change in staff costs was due to normal factors like full-quarter impacts of prior hires and compensation adjustments, not a significant underlying increase.

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    Sameer Bhise's questions to HDFC Bank Ltd (HDB) leadership • Q1 2025

    Question

    Sameer Bhise asked if there was a case for repricing HDFC Limited's borrowings between floating and fixed rates. He also questioned the sequential jump in staff costs, despite a one-off in the previous quarter.

    Answer

    CFO Srinivasan Vaidyanathan stated that the legacy borrowings are a mix of fixed and floating, with hedges on much of the fixed-rate debt, and are reviewed monthly by the ALCO for optimization. Regarding staff costs, he clarified there was no significant underlying increase, attributing the change to routine factors like the full-quarter impact of prior-quarter hires. Executive Director Sashidhar Jagdishan added that the bank tightly manages asset-liability duration gaps to ensure margin stability.

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