Unknown Analyst's questions to HDFC Bank Ltd (HDB) leadership • Q4 2025
Question
An analyst from DB Wealth asked for a macro perspective on India's position in the credit growth-to-NPA cycle and questioned whether the bank's incremental growth in SME and retail loans would come at the cost of higher NPAs within its target range.
Answer
Executive Srinivasan Vaidyanathan suggested the industry's credit cycle may have bottomed out a few quarters ago, but HDFC Bank's NPAs have remained steady. Executive Sashidhar Jagdishan firmly stated that growth would not lead to higher loss ratios, as the bank intends to stick to its well-tested customer segments where there is a long runway for growth without moving down the risk ladder. Vaidyanathan added that credit policies will not be changed to chase volume, as the bank focuses on securing total banking relationships, not just providing standalone loans.