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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The private sector bank’s no-holds-barred quest to bump up deposits (and cut back on credit) has only hurt its profitability and put off investors.
When HDFC Bank announced its January-March quarter results of the 2023-24 fiscal year, it seemed to have pulled off the unthinkable. It had managed to shave five percentage points off its dangerously high credit-to-deposit ratio, bringing it down from 110% to 105%.
The bank had capped credit growth to a mere 1.6% on a quarter-on-quarter basis, growing deposits at a decent 7.6%. A thrust on deposit growth (along with slowing loan sanctions) helped bring down the ratio of its total loans to deposits.
This, by any yardstick, is a job well done. Correcting the key indicator of its liquidity—and, by …
