Anup Bagchi, who is set to assume the role of managing director and CEO of HDFC Bank, confirmed he will soon release a comprehensive strategic roadmap covering growth, margins, asset quality, and productivity. Speaking on the bank’s Q2 FY27 earnings call, Bagchi stated he would consult with regulators, customers, shareholders, and other stakeholders before finalizing organizational priorities. The roadmap will focus on capital deployment, execution, and governance as the bank adapts to economic shifts, artificial intelligence, and digital infrastructure changes. “The clear long-term goal is to deliver sustainable long-term value for shareholders, employees, and clients,” Bagchi said.
Sashidhar Jagdishan, who is stepping down after six years at the helm, attributed recent margin pressure to lending rates falling faster than deposit costs during the rate-cut cycle. He predicted this trend would reverse as the rate cycle turned and retail and MSME loans accounted for a larger share of the bank’s assets. “The trajectory will be upward from the next quarter on,” Jagdishan said, addressing questions on the margin outlook. With 70% of the bank’s loans linked to floating rates, mostly tied to the repo rate, the October rate hike is expected to reprice much of the portfolio by December.
HDFC Bank reported a 4.7% year-on-year increase in net profit to ₹19,510 crore for the July-September quarter of FY27. This growth was achieved despite a decline in other income and higher operating expenses and provisions, which partly offset the growth in core interest income. Deposit growth of ₹1.6 lakh crore was driven largely by time deposits and FCNR(B) inflows, which offset gains from calling AT1 bonds in August. Jagdishan noted that the repayment of ₹2.6 lakh crore in inherited HDFC Ltd wholesale borrowings distorted some headline figures, while retail CASA remained in the late 40s percentage range.
Jagdishan highlighted that the branch network doubled over five years, a move he believes will support future deposit growth as it matures. He also announced that Bharucha, a 30-year veteran who helped build the bank’s credit architecture, had sought early retirement by December 31, 2026. While employee numbers have remained flat for three years, Jagdishan indicated the workforce will shift towards customer-facing roles, with headcount potentially rising in three to four years. Technology investments are already beginning to cut turnaround times through automated processes, setting the stage for Bagchi’s forthcoming leadership priorities.