Saurabh Kumar's questions to HDFCBANK leadership • Q2 2025
Question
Saurabh Kumar pointed out that the Risk-Weighted Assets (RWA) to total assets ratio declined quarter-on-quarter despite slower growth in corporate and mortgage books, and asked for an explanation. He also questioned if a potential 50 basis point rate cut would boost savings account growth.
Answer
CFO Srinivasan Vaidyanathan attributed the RWA density decline from 69% to 67% primarily to carrying higher liquid assets, noting that High-Quality Liquid Assets (HQLA) increased by nearly INR 40,000 crores on an average basis. On the savings account question, CEO Sashidhar Jagdishan stated that savings balances have historically been rather inelastic to rate changes. He added that the bank would not act unilaterally but would watch how the system and banking fraternity react to any rate cuts before making a decision.