HDFC Bank May Rework Funding Mix as Incoming CEO Anup Bagchi Sets Priorities

HDFC Bank may explore alternative balance-sheet strategies to reduce the pressure to raise corporate deposits, outgoing CEO Sashidhar Jagdishan said on the second-quarter earnings call, as incoming Managing Director and Chief Executive Officer Anup Bagchi prepares to set his priorities. NDTV Profit reported the comments. HDFC Bank is India's largest private-sector bank, offering universal banking across retail, NRI, HNI, wholesale, MSME, agri and government-scheme segments.

Jagdishan's Comments on the Funding Mix

Jagdishan said the bank could consider alternative balance-sheet strategies, including some non-deposit funding, to increase the share of retail deposits over time. "Now, as I am sure Anup in the next weeks or a couple of months' time will unveil his strategy, and one of the things is how do we create less pressure on the system to minimize the intake or inflow of corporate liabilities and then ensure— so these are some of the things that will be a part and parcel of his thought process as he unveils to the world at large, including yourselves, in probably a month's time or so," he said. He did not specify a target for reducing corporate deposits or detail the alternative funding strategies under consideration, and said the bank would continue to need non-retail liabilities because demand remained strong across its corporate, MSME and retail businesses.

Deposits increased 18.8% year on year on a reported basis, including a four-percentage-point contribution from the special FCNR(B) window. Overall CASA grew about 10.8%, while retail CASA grew 11.2% year on year, compared with 9% a year earlier. HDFC Bank added about 1.7 million liability relationships during the quarter, 25% more than in Q1 FY27 and 33% more than in Q4 FY26, and core incremental deposits per branch per day were 2.3 times the Q1 level, according to management.

HDFC Bank's Funding and Technology Records

HDFC Bank raised $750 million in June 2026 through a five-year senior unsecured USD bond at a 5.067% coupon, priced at 90 basis points over US Treasuries, according to akta.pro company records. The same records list a September 2026 post-IPO debt raise of $12 billion and an August 2026 post-IPO debt raise of $1.8 billion. HDFC Bank is considering a sixth technology centre in Karnataka on top of existing centres in Bengaluru, Gurugram, Mumbai, Guwahati and Amravati, supporting about Rs 8,000 crore, or roughly $1 billion, in FY26 technology infrastructure spending.

Bagchi's October 27 Start Date

Bagchi will become MD and CEO on October 27 with a Rs 35.9 crore package, Financial Express reported. Bagchi said he would engage with regulators, customers, shareholders and other stakeholders before setting the bank's organisational priorities. The direction of any changes to HDFC Bank's funding strategy will depend on the priorities he sets out after those consultations.