Suresh Ganapathy

Suresh Ganapathy asked about the bank's LCR for the current quarter and how it might change after the new April 2026 guidelines. He also questioned if the bank aims to maintain the current LCR level or if there's a normative level. Lastly, he asked if the rising LDR, due to deposit growth lagging loan growth year-on-year, is a constraint or merely an outcome as long as other ratios remain intact.

Answer

Anindya Banerjee, CFO of ICICI Bank, reported the LCR for the quarter as 126%, expecting it to remain similar post-April 2026 guidelines. He explained that the LCR is a result of the bank's funding structure and liquidity cushion, with an average level above 120% being acceptable, though there's no strict policy. Regarding LDR, Mr. Banerjee stated that banks with higher capital can afford a higher LDR, and while the system's LDR increased due to the CRR cut, the bank is comfortable at its current level and does not foresee it increasing further, aiming to maximize retail deposits and maintain moderate reliance on wholesale funding.

Suresh Ganapathy asked about the bank's Liquidity Coverage Ratio (LCR) for the current quarter and its expected movement post the new April 2026 guidelines. He also inquired about the bank's normative LCR level and whether it acts as a constraint. Additionally, he questioned the rising Loan-to-Deposit Ratio (LDR) due to deposit growth lagging loan growth, asking if LDR is a constraint or acceptable as long as other ratios are intact.

Answer

Anindya Banerjee (CFO, ICICI Bank) reported the LCR for the quarter as 126% and expects it to remain similar post-April 2026 guidelines. He stated that the bank maintains a certain funding structure and liquidity cushion, resulting in this LCR, and that an average level above 120 is generally acceptable, without a strict policy. Regarding LDR, Mr. Banerjee explained it's a function of liability structure and capital ratios, noting that the system's LDR increased due to the CRR cut. He expressed comfort with the current LDR level, not expecting it to rise further, and emphasized maximizing retail deposits (CASA) while maintaining moderate reliance on wholesale funding.

Suresh Ganapathy inquired about HDFC Bank's ability to meet its priority sector lending (PSL) obligations without impacting margins and sought an update on the long-term cost-to-income ratio target and the progress of the HDFC One app.

Answer

CFO Srinivasan Vaidyanathan noted that the bank's PSL compliance has improved year-over-year. Executive Director Sashidhar Jagdishan reaffirmed the long-term goal of a 30% cost-to-income ratio, stating that current stability is commendable amidst strategic investments. He added that progress on cross-selling via digital platforms is steady, with notable success in onboarding home loan customers to primary banking services.

Suresh Ganapathy inquired about the bank's ability to meet Priority Sector Lending (PSL) obligations without impacting margins, given the increase in RIDF bonds and PSLC purchases. He also sought an update on the long-term cost-to-income ratio target of 30% and the progress of the 'HDFC one' app for cross-selling.

Answer

CFO Srinivasan Vaidyanathan stated that year-on-year, the bank's PSL compliance has improved. Executive Director Sashidhar Jagdishan reaffirmed the 30% cost-to-income ratio as a medium-to-long-term goal, highlighting that maintaining stability with a downward bias in the current environment is commendable. He added that cross-selling efforts are progressing well, with high savings account linkage for new home loans and increased distribution for subsidiaries.