Thanks for posting this - is the presentation available anywhere? I couldn’t find it on the HDFC Bank site in the Investor section.
Interesting point he made about the importance of having physical branches for customer acquisition. Not that surprising, but good to hear that validation from their experience. Similarly, the opportunity to grow deposits as the branch vintage increases. Also good to hear that he is expecting consumer book to pick up, which they had reduced focus on, post Covid.
Few other insights I picked up - LCR requirements not being a cost anymore given the compression in interest rates, proportion of unsecured loans going down with HDFC Limited acquisition + opportunity to grow unsecured loans to that customer base, cost to income to come down a bit. Priority sector assets - some costs may go up. Enough capital (CET1 ratio, a new term I learnt) till FY28-29, as HDFC Limited is overcapitalized - ROE will go down a bit post merger. Need for dollar bond funding quite limited now, and not in plans currently. Ambition to continue to be in the 2% ROA zone. Don’t see profitability hit post merger though NIM will be lower, as home loan NIM is lower.
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