diverse needs like savings, borrowings, protection and investment end to end. Now I would like to elaborate on the global macroeconomic environment. The global economy continues to operate in an environment of heightened uncertainty, geopolitical tensions, including in West Asia, having led to energy markets and supply chain disruptions, all contributing to an unpredictable global operating environment. The spread and intensity of these changes are often fast and disruptive. The IMF projects global growth to be at around 3% in 2026 and against 3.4% in 2025, indicating that the external environment is likely to remain challenging. We are however proud that India continues to be amongst the fastest growing major economies of the world. The Indian economy grew by 7.6% in FY2025-26, supported inter alia by an acceleration in domestic demand benefiting from GST income tax cuts. Moreover, growth was also supported by continued capital expenditure driven by government and private investments. It was encouraging to see services like financial, real estate, expansion of GCCs adding to economic growth. We also saw manufacturing activity gather momentum due to infrastructure development, policy support and increasing integration with the global value chains.
Despite continued headwinds, the outlook for Indian economy continues to remain positive for the current financial year. The acceleration in consumer demand, continued investment in physical and digital infrastructure, formalization of economy and a favorable demographic profile provide a strong foundation for sustained growth in India. However, the unsettled situation in West Asia changing on a day-to-day basis continues to pose risk to growth and inflation. The RBI has projected GDP growth of 6.6% for FY2026-27 while revising its inflation forecast to 5.1%. The Indian banking sector in this background is well placed to participate in the economic opportunities. Bank credit has continued to register healthy double-digit growth of above 15%. Asset quality has improved significantly with the gross non-performing asset ratios declining to around 1.8%, the lowest level ever in around two decades. Banks today are well positioned to support investment, enterprise and economic growth. As India moves into the next phase of its developmental journey, sustaining high-quality growth will require continued public investment alongside greater private sector participation through investments in capacity, technology and innovation, with sound macroeconomic fundamentals and a resilient banking system.
Confident that India is well positioned to navigate near-term uncertainties and grow on a sustained basis. I would now like to update you on the performance of the bank in the financial year that just concluded. Your bank is a domestic systemically important bank. We are proud to be an integral part of India's growth story. This is across the spectrum starting from supporting the marginal farmers, rural economy, the retail consumers, the MSME, mid-market business and large corporates. The bank through its well-established distribution presence, comprehensive product suite, customer servicing capabilities and the technology investment is strongly positioned to participate on both the consumption and the investment cycles of the economy. There has been an overall positive momentum in the year-on-year financial performance of your bank in financial year 2025-26, while it continued to maintain its record of a strong asset quality. The bank's profit after tax grew by 10.9% to Rs. 74,671 crores. Advances also grew by 12.1% compared to previous year's growth of 5.4%. The bank's advances in FY2026 stood at Rs. 29.37 lakh crores. Deposits increased by 14.4% which was faster than the system growth rate of 11.5%. Deposits for the last financial year stood at Rs. 31.05 lakh crores. Overall, your bank kept its focus on profitable growth with high asset quality.
In the year under review, HDFC Bank issued its first ever bonus equity share in the proportion of 1:1. Further, the board of directors also approved a special interim dividend of Rs. 250 per equity share adjusted for bonus issue, which along with a final dividend of Rs. 13 per equity share of Rs. 1 each has resulted in the total dividend for the financial year 2025-26 being Rs. 155.0. I would like to take this opportunity to thank our 4 million plus stakeholders as well as 100 million plus customers for the trust they continue to repose in HDFC Bank. Their trust is the bank's greatest asset and our strongest motivation to continue raising the standards of service and performance in the most ethical manner. I would also like to draw your attention to a milestone that we celebrated last year. The bank completed 30 successful years of listing at the National Stock Exchange on November 11, 2025. This occasion was marked with an event at the NSE with senior executives from the bank as well as NSE ringing the ceremonial bell. Let me acknowledge that what the bank has built over the last 30-plus years is shareholders' trust. We commit that we will continue to strengthen this bond and the trust of this institution with the highest levels of corporate governance standards. The board is conscious of this responsibility.
Let me come to the current year and future as we, the board and management, foresee today. With technology platforms modernized and distribution deepened across India, we stand at a pivotal moment ready to deliver significantly across business outcomes. Over the last five years, your bank has performed well. HDFC Bank has gained incremental deposit market share through this period and in the financial year just concluded, the deposit growth has been 14.4% compared to the system growth of 11.5%. Similarly, advances have also grown by 12.1% compared to the previous year's growth of 5.4%. The asset quality has been strong over the period pre and post merger, and all this has resulted in healthy revenue and better growth. The merger has resulted in structural changes in our balance sheet, primarily in the CASA ratios and our NIMs. As we continue our progress on incremental deposit market share and with a stepped up focus on consumption side of the economy, we are confident of improving these metrics of CASA and NIM also in a few quarters. The robust parameters of the bank, as was just shown in terms of customer base, advances, deposits, gross NPA, PAT, ROA, all this reflect a strong performance-oriented work culture of the bank and that gives us sufficient confidence of improvement in CASA and NIM as well once the structural changes of merger settles down. And your bank is a financial service conglomerate as I mentioned. The merger with HDFC Limited has already begun unlocking meaningful synergies. Cross-sell between the bank and the subsidiaries is healthy and over 90% of the new-to-bank home loan customers now open savings accounts with us, strengthening primacy as we enhance our presence in this segment and leverage on the long tenure and emotional relationship that comes with the mortgage product. The bank is well poised to become the primary banker for a large set of customers, improving the strength of our franchise.
Your bank is also the leader in MSME sector with number one position in 15 states. The bank is leveraging its presence across 721 districts with a product suite that caters to the needs of the varied requirements in this segment and with a dedicated relationship management framework. With a market share of 20% plus in MSME lending and active participation in various government service schemes, your bank is well poised to maximize its performance from this growing and employment generating sector. Our sustained branch expansion combined with strong digital servicing capabilities give us unmatched geographic coverage. We have added more than 4,000 branches in last five years, as it is often called a bank within a bank, with around 50% in the semi-urban and rural areas because growth is there. Your bank has the highest per branch deposit productivity across the industry. As the vintage of the branches increase, so does their productivity over time. This enhanced reach across consumer and MSME segment supported by seamless digital processes positions us to grow faster, serve better and acquire customers more efficiently across the geographies all over the country.
We have made deliberate and forward-looking technology investments by upgrading and modernizing our core stack, enabling embedding GenAI enterprise-wide through structured lighthouse programs anchored on our in-house foundational AI platform, while being very conscious of the cybersecurity and data privacy aspects. The technology investments have resulted in digitalizing our acquisition and service journeys enabling faster turnaround, frictionless onboarding and intuitive servicing. We will continue to reinvest in technology and operating platforms, lifting productivity, enhancing customer experience and ensuring our systems remain future ready. We are also conscious of the associated risks. We are very alive to them as well.
A strong governance has remained and will remain the foundation of your institution. Following the resignation of former part-time chairman, the board engaged with both domestic and international external law firms overseen by special committee comprising of independent directors. The findings were disclosed to the stock exchanges on 26th June 2026. Strong institutions are defined by how good the policy and processes are across their operating and governance domains and whether the processes are followed in a robust manner. The process should identify issues internally, investigate them, act upon them and disclose them wherever required and hold everyone involved accountable. The process is what allows institutions to become trustworthy as it ensures that any potential cause for concern that arises can be addressed on a case-to-case basis and systemic improvements introduced in a wholesome manner to plug gaps to prevent recurrence.
We are committed to ethical good governance. The bank remains committed to supporting various government schemes. HDFC Bank continues to be one of the leading agency banks for government tax collections. In FY2026, it added one new state for collection, taking the total coverage to 11 states. Also since the launch of Pradhan Mantri Mudra Yojana, HDFC Bank has extended loans amounting to over Rs. 1 lakh crores to the eligible beneficiaries. HDFC Bank also opened 58.8 lakh PMJDY accounts and enrolled 1.2 crore customers in social security schemes since inception. Your bank continues to be committed to financial inclusion by taking banking to the remote areas of the country. You would be happy to know that currently half the branch network of the bank is in semi-urban and rural areas. The bank also continues to advance its commitment to inclusive and sustainable development through Parivartan, the bank's CSR program, guided by the belief that long-term business success is closely linked to the progress of the communities. Our flagship program, the holistic rural development program, is helping improve quality of life across rural India and now reaches over 11,000 villages including 498 border villages which are far-flung and inaccessible, reaffirming our commitment to inclusive development.
An organization's progress is made possible by the commitment and professionalism of its employees. On behalf of the board and myself, I thank each one of our 2 lakh 11,000 plus employees for their dedication and commitment. The bank's efforts in learning and skill development in FY2025-26 was higher than ever before resulting in over 1.36 crore training hours by employees. The bank will continue to increase its upskilling program and enable employees to leverage AI more and more to improve their productivity and the distribution cycles. Inclusivity and employee well-being have been at the heart of our priorities. I'm pleased to share that our sustained effort to improve women's participation is showing good progress with the gender diversity ratio now at a record 26.6%. Recognizing our scale and the diverse multi-generational workforce at the bank, we will further intensify initiatives to support employees' well-being. I appeal to all the employees to put their best foot forward, take the bank to newer heights, set higher standards of ethical governance. Needless to add that policy of no tolerance, repeat no tolerance towards any kind of deviation from established policy regime will be followed.
Large institutions like HDFC Bank may encounter some issues from time to time. It's a very big ship. One can encounter certain deviations. It is important that these issues are addressed in a timely and transparent manner. The bank has demonstrated that it has controlled systems, guard rails in place to identify deviations if any and the oversight at committee levels are strong. Let me reiterate on my behalf and on behalf of the board that the bank is fundamentally strong with a pristine balance sheet. There are no governance related concerns at the systemic level. The board is committed to ensure that HDFC Bank operates from the pedestal of highest levels of corporate governance and remain anchored in integrity, transparency, accountability and prudent stewardship. The board will ensure that control functions remain fully empowered to have zero tolerance towards any unethical practice which will be dealt with speed and firmness on a case-to-case basis. As chairman, I look forward to working closely with my fellow directors, very esteemed fellow directors, as we continue to build on the strong foundations of this institution and will uphold the trust that customers and shareholders have placed in HDFC Bank over the decades. We are conscious that it takes decades to build the reputation and a few days to demolish it. We'll be always very conscious of this fact. On behalf of the bank, I wish you and your families good health and happiness and also take this occasion to greet you in advance for India's Independence Day. Jai Hind.
We now invite the shareholders of the bank to share their thoughts and comments with the board and senior management of the bank. Your thoughts and feedback are very important in functioning of the bank. We have 62 speaker shareholders who have registered themselves and in the interest of time I humbly request the speaker shareholders to keep their comments brief and restrict their questions or suggestions on the performance of the bank for the financial year 2025-26 and resolutions proposed to be passed at the AGM. We request each speaker shareholder to therefore limit their speech to three minutes please. We'll respond to all the questions or queries at the end. If you require any further clarification or have any query you may get in touch with us, our company secretary Mr. Rajal or his team at the address mentioned on our website. I now request the moderator to kindly invite the speaker shareholders in order of their registration please, and we have all the ears to you. Thank you.
Thank you. A warm welcome to all the speaker shareholders. I will call out the names of the speaker shareholders in the sequence of their registration. As requested by chairman sir, in order to give an opportunity to all the shareholders who have registered to speak at this AGM, I urge speaker shareholders to restrict their speech to three minutes please. We will admit you to the meeting at your respective turn and thereafter you may start speaking. Request you to keep your video and audio on while speaking. In case there is any issue with internet connection or bandwidth at your end, you may switch off your video. May I invite the first speaker for today, Mr. Gautam Kedar Prasad Tiwari, to speak.
Can you hear me and see me, sir?
Thank you very much, sir. Thank you very much. Respected chairman, board of directors, esteemed shareholders, colleagues and distinguished guests. Good afternoon to all of you, sir. Sir, it is both an honor and a privilege to address this esteemed gathering as a shareholder of HDFC Bank at our 32nd AGM. Sir, I extend my heartfelt gratitude for the opportunity to share my thoughts, reflections and aspirations. I warmly welcome our new chairman Rajiv Kumar ji. Your opening speech has beautifully explained all the functioning of the bank and the status of the bank as it stands now. Sir, as you are aware, we have immense admiration and highest respect for you. Sir, two lines for you. What we shareholders feel about HDFC Bank? In two sentences, I would like to convey. HDFC Bank has over the years built a solid reputation for stability, innovation and trust. As shareholders, we are deeply invested not only financially but also emotionally in the bank's journey towards sustained excellence. Sir, through prudent management and a focus on customer centricity, HDFC Bank has continued to uphold its legacy as one of India's premier financial institutions. Sir, this investor service headed by Ajay and supported by Vaishali and other teammates is exceptionally outstanding. Balance sheet is strong, robust, voluminous, well-designed, transparent, informative, adhering to all norms of corporate governance with all facts and figures in place. Sir, management team's performance despite uncertain geopolitical conditions and supply chain disruptions is praiseworthy. Thanks a lot, sir, for rewarding shareholders very gracefully with rich dividend year on year and with bonus also, without asking for the bonus. Given the bonus year on year with wonderful performance. Sir, congratulations also to the management team and the company for best CSR activities and winning multiple awards and accolades always and all the time.
Sir, few queries I would like to have, sir. First, considering the impact to ADR holders, few law firms in USA are investigating following media reports earlier this year and at an internal probe by the bank into alleged irregular payments. Now is our bank ready for US class action, sir, and will international investors lose confidence because of this? Very important, sir. HDB Financial Services IPO was a tremendous success and it was a major milestone last year, sir. What about the plans for other unlisted subsidiaries like HDFC Securities and HDB Capital, sir? Why does the bank have joint statutory auditors and only one central auditor? Fourth, how many branches and ATMs does the bank have right now, sir, and how many new branches and ATMs and cash deposit and withdrawal machines, that is CDMs, did the bank set up during the year? Sir, Rajiv Kumar sir, given your background of decades of experience in public services, what areas of improvement do you see for HDFC Bank as a whole, sir? What is the bank's long-term strategy to improve its share price and what are the plans for improving CASA and net interest margins? Finally, what is the total number and total percentage of female employees that we have as on March 31st? And sir, please provide male-female ratio of employees for the financial year ending March 31st, 2026. And finally, any plans for reducing number of ATMs due to increased use of UPI? Sir, conclusively I would like to say I support all resolutions and I voted favorably for each one of them in advance. I also support, sir, appointments and reappointments of all directors, praying and wishing for each member of HDFC Bank a healthy, wealthy, joyous life for each member, for each one connected with the bank, and a super fine future for our company's progress. Jai Hind, sir. At the end, just give me 10 seconds, I would like to say for the management, sir, please listen. [garbled audio] Thank you very much, sir.
Thank you. I now invite our second speaker shareholder, Mrs. H.S. Patel, to speak.
Yes, we can hear you. Please go ahead.
Thank you. Respected, a very good afternoon to all of you. I'm Mrs. Patel from Mumbai. This is the 32nd AGM and today the share price quoted is almost Rs. 739. I respect our most favorite interim part-time chairman Mr. Keki Mistry, the executive director and CEO Mr. Jagdishan, [garbled], our CFO Mr. Vaidyanathan, and our most favorite Mr. Ajay Agarwal ji, the company secretary. Thank you, Mr. Vaidyanathan and Ajay Agarwal ji, for your very good, excellent annual report that you have given. Balance sheet is also very good. It's on a higher side. Every item in the balance sheet is on a higher side. Very good performance done by the bank. All the employees of the bank, I congratulate all of you to a great extent. I also congratulate the bank for the various awards and accolades that the bank has won. CSR activities have been quite excellent. Sir, thank you for giving me an opportunity to speak at this 32nd AGM. I appreciate the excellent performance and dedication of all the employees of the bank who have worked very hard to give this excellent result. I have been observing this from the balance sheet. Sir, the balance sheet is very strong and healthy, special reference to revenue, income, EPS and P&L, profit and loss account. Sir, your reserves and surplus, what I observed from the balance sheet, is extremely very high. Last year it was Rs. 58, this year it has become Rs. 580. Sir, the board of directors have transferred the capital reserves from Rs. 507, it has gone up to Rs. 8,320. Excellent. May I know the reason for this high change from Rs. 507 to Rs. 8,320? Sir, your foreign exchange has also been very good. The inflow is almost Rs. 8,450 and the outgo is very nominal, Rs. 4,938.
I put some questions. The merger with HDFC has completed two years. What synergies has it released in terms of CASA growth and efficiency and profitability? With fintech and digital banking becoming increasingly very competitive, how will we continue to gain this market share? How does the bank plan for its capex in the next three years? How much will we invest in digital infrastructure, cybersecurity and opening new branches and ATMs? How would you maintain a low-cost CASA and maintain high-quality assets? Will the bank continue to give such good dividends with high proficiency in balance sheet? What is the management internal target for NIMs, loan-deposit ratio, CASA ratio and deposit growth? I thank once again to the board of directors, to the management team and all the employees of the bank. In the heavy rains, in heavy sunlight, and in cold winter, all the employees have worked very hard to give very good results to us throughout the year. You all have worked very hard. All the best and good luck to you all. I support all your resolutions that you have stated in your notice. I once again thank our company secretary and, one minute please, and also Madam Vaishali, excellent good job they have done. I'm very pleased and very happy with Mr. Ajay Agarwal. Since years he has been with HDFC, he has again joined with the bank. We are very pleased with his services. I wish him good luck and I wish that he also comes up in the HDFC Bank. Thank you very much, Ajay, Vaishali, and Mr. Vaidyanathan for giving excellent balance sheet. All the very best to the board of directors and to the management team. Good luck to you from Hutakshi in Bombay.
Thank you. I now invite our third speaker shareholder, Mr. Tamil Kumar Mazunda, to speak.
Yes, ma'am. Good afternoon, Mr. Kumar, Mr. [garbled], Mr. Jagdishan, Mr. [garbled], and other directors of the bank. Myself, Tamal Kumar Mubla, equity shareholder from Kolkata. We all welcome former Chief Election Commissioner and [garbled] Secretary of Government of India, Mr. Rajiv Kumar, as our new chairman with effect on 30th June 2026, and hope that under his able leadership the bank will reach many positive milestones in the coming years. Sir, my special thanks to Mr. Ajay Agarwal, group head secretarial and group oversight, and his team for sending the hard copy of the annual report and keeping in touch with shareholders. Ajay is always available over phone, mail or WhatsApp and ready to solve problems faced by shareholders. We are really fortunate to get a company secretary like him. Sir, I have gone through the annual report of 628 pages and have some queries for explanation or replies, and to complete asking questions from a 628-page report is not possible within 3 minutes. So I seek your indulgence. Firstly, sir, first of all I would like to congratulate the board of directors for declaring bonus shares in the proportion of 1:1 during financial year 2026, utilizing a part of share premium. We strongly believe that the board will consider this type of pro-investor steps in the coming years.
Sir, during the year the bank declared better results booking a net profit of Rs. 74,671 crores. Last year it was Rs. 67,347 crores, with the help of massive increase in profit on sale of investments net of Rs. 12,861 crores. Last year it was only Rs. 2,223 crores. It is in page 370. Sir, as per bank business segment accounts, it is in page 450 to 451. Though treasury and retail banking segments increased profit excluding interest and other unallocables at Rs. 21,142 crores (last year Rs. 4,650 crores) and Rs. 32,280 crores (last year Rs. 27,209 crores) respectively, yet wholesale banking and other banking operations decreased their profit at Rs. 33,948 crores (last year Rs. 44,544 crores) and Rs. 10,416 crores (last year Rs. 14,364 crores) respectively. Please share your thoughts in this aspect disclosing the reason for decrease in profit in wholesale banking and other banking operations. Sir, out of total profit on sale of investments, the company booked Rs. 9,179 crores as net gain by selling a portion of its investment in HDB Financial Services Limited. What is the source of the remaining Rs. 3,682 crores, that is Rs. 12,861 minus Rs. 9,179? And what is your expectation for financial year 2027 relating to business and profit? Sir, it is noted that the net interest margin for financial year 2026 was 3.34% against last year's figure of 3.43% despite healthy growth in advances and deposits. In this connection, your competitor ICICI Bank booked a NIM of 4.32% during financial year 2026. What program the management is considering to improve NIM over the next couple of years without compromising asset quality? Sir, our CASA ratio slid to 34.15% during financial year 2026 which further slipped to a range of 32 to 32.6% during Q1 of financial year 2027. In comparison, CASA of SBI and ICICI Bank during financial year 2026 are at 39.6% and 38.6% respectively, and in Q1 of financial year 2027 at 39 to 40% and 41.43% respectively. What initiatives are being undertaken by our bank to improve the CASA ratio and reduce dependence on high-cost deposits?
I have three other questions, sir. It is nice to note that the bank recovered Rs. 4,400 crores from written-off accounts. What is your expectation in this regard during financial year? And sir, if you look at page 49, then you may notice that though number of frauds decreased substantially, yet provision increased to Rs. 630 crores against last year's figure of Rs. 415 crores. Whether the management found any involvement of its staff officials in this respect? What steps the management has taken to decrease it? And sir, as it is noted from page 536 that RBI levied penalty of Rs. 95.88 crores on the bank for granting a term loan to a foreign-owned or controlled company for acquisition of shares of an Indian company, for not adopting a uniform external benchmark within a loan category, etc. Its subsidiary HDB Financial Services Limited was penalized Rs. 32 lakhs for not obtaining PAN or equivalent documents in certain loan accounts disbursed during financial year 2024. What step the management has taken against officials responsible for this mess? Before I conclude, I would like to express my sincere gratitude to Keki Mistry, our acting chairman for the period 19th March 2026 to 29th June 2026, for providing steady and effective leadership during the challenging period following the sudden resignation of the former chairman Mr. Chakravarti, which was attributed to certain issues that were subsequently found to be unfounded. He stepped in and ensured continuity, stability and confidence in the bank governance. His calm and responsible stewardship during the turbulent phase deserves our appreciation. And lastly, sir, when will the board declare appointment and reappointment of the CEO as the current CEO's term will expire within 81 days or on 26th October 2026? Thank you all for your patient hearing. Thank you.
Thank you. I now invite our fourth speaker shareholder, Mr. Manosh Kumar Gupta, to speak.
Hello. Good afternoon, respected chairman, board of directors, fellow shareholders. My name is Mano Gupta. I've joined this meeting from Kolkata. I feel proud to be a shareholder of HDFC Bank. First of all, I feel proud to see you as our chairman. I have got a chance to meet your honor at Kolkata during the 2024 general election in Kolkata. You are indirectly my relative. So we feel proud that our relative has become the India's leading private sector bank chairman, and I wish to God that RBI will approve your name as a full-time non-executive chairman of the bank. And I wish to God to give you more success, happiness and smile in coming time to take the bank on new heights under your leadership, which you have done in the Election Commission and the Ministry of Finance. We always feel proud when I read in the newspaper that your name has been approved by the RBI as chairman. We are very happy and we feel proud that your dedicated work and transparency will help the bank to grow more in coming time. Sir, I thank the company secretary and his team to help us to join this meeting through VC. Especially I thank Vaishali who called me seven times after getting my speaker request. And sir, you have covered all things about the working of 2025-26, you have not left anything for the shareholders that they can ask you, because you know everything what we will ask. [audio lost]
You're not audible, sir. I now invite our fifth speaker shareholder, Mr. Santosh Kumar Saraf, to speak.
Rajiv Kumar. Thank you. Election Commission, bank management. Sir, you are professional. Digital innovation, AI or personalized financial services, growth. [garbled] customer experience. Last, management, HDFC [garbled], management, finance, [garbled]. [garbled]. Rajiv Kumar.
Thank you. I now request our sixth speaker shareholder, Mrs. Lea Satisha, to speak.
Hello. Am I audible, ma'am?
Thank you, ma'am. Respected chairman sir, board of directors and my fellow members, good afternoon and regards to everyone. Myself Leasha and I'm joining this meeting from Mumbai. First of all, I would like to warmly welcome our new chairman sir, Mr. Rajiv Kumar ji, on the board. Thank you, chairman sir, for the insightful and well-presented addresses. Chairman sir, I'm confident that with your vision and determination you will lead our bank to greater heights, and also I pray to God our bank will progress more and more under you and your team. Chairman sir, I pray to God that He always showers His blessings upon you. At the outset, I would like to sincerely thank our company secretary, sir, especially Vaishali, for sending the report well in advance. I found the report and I'm delighted to say it's so beautiful, full of colors, informative, comprehensive and enriched with valuable facts in place. Once again, thank you so much, my company secretary sir and Vaishali. I congratulate chairman sir, the board of directors and all the employees for the effort and dedication during the year. I appreciate the bank's performance and wish the management continued success and growth. I extend my heartiest congratulations to the board and management and all the employees for receiving the prestigious awards at the bank. Chairman sir, I would like to ask a few questions. My first question is: how is the bank integrating technology and AI to improve customer services and operational efficiency? And my second question is: what steps are being taken to strengthen cybersecurity and protect customer data? Chairman sir, I hope the bank will continue video conference meetings in future. So I would like to say I strongly and wholeheartedly support all the resolutions placed before the meeting today. Thank you, chairman sir.
Thank you. I now invite our seventh speaker shareholder, Mr. Kamal Kishore Jawer, to speak.
Hello, sir. Okay, thank you madam, thank you madam. Chairman sir, all directors, all employees, namaskar. Kamal Kishar from Hyderabad, sir. [garbled] Secretary. Villages. Balance sheet, page six, detail. [garbled] deposit, advance [garbled]. Number one, number one [garbled]. Chairman, [garbled]. Thank you, sir.
Thank you. I now invite our eighth speaker shareholder, Mrs. Humay Beerus Poor Dei, to speak.
Yes, we can. Yes, please go ahead.
Thank you very much. Good afternoon, everybody. I'm a shareholder right from day one. Today is such nostalgia. We used to meet with Mr. Deepak Parekh, Mr. Keki Mistry, and in front of us we have seen how the bank has grown and how they have made our bank grow. It's full trust and confidence in the leadership of our Mr. Keki Mistry, full trust, and of course we wish all the best to our MD, to our present MD, to our present part-time chairman. Together we want the bank to grow, to continue to grow further and further so that we benefit. We wish...
Of them all the very best. Now, I want another thing. Thank you for having this Zoom. Please continue to use Zoom for us to log. I don't want to go into details, but this is the best thing to get across. Of course, regarding Mr. AJ Agarwal, company secretary, and Vishali, we know him since decades, his vast experience, and of course, I cannot describe the services of Madam Vishali. Others have done enough. I just have a few questions I would like to ask you. What do I do when we go to the bank? What is to be done? I'm a lay person; I don't understand. When I go to the bank and they say the system is slow, even the person behind the counter is harassed, plus the customers are being harassed. The system is slow. The system is down. We cannot get it. So, what is to be done in this situation? What is the solution? As a lay person, I really want to know because it affects the customers and the responsible banking system operating. And number two, in case you can let us know who are our big-ticket defaulters, if you can let us know. So, we had heard the chairman's speech in detail. You are so well spread. In fact, MPs, we are the highest, right? You mentioned that, and that means you are very well spread all over India. I just want to know. I know in Punjab you all are there so well, in HP you all are there, and I want to draw your attention. Your ATMs are of such good use and such good help to us. For example, when I go to Vasai, I want to withdraw, your ATM is there. I am really grateful and I thank you for the same. Now, one more thing: do you still continue to train your staff in data security, fraud detection? Because in Chandigarh, your staff drew my friend's attention to her account being hacked, and her balance was saved only because of the presence and alertness of your staff in the bank in Chandigarh. So, to continue to train them in data security, fraud detection, which is a must, and I cannot forget that. And that's all. We don't want there are always forces which tarnish our bank's reputation; one should understand that it is unavoidable, it is inevitable, and I want to close here, not to take further time. I wish our company all the very best, all the people who are associated with us; they continue to get benefit. Thank you very much.
Thank you. Our ninth speaker shareholder, Mr. Prammot Kumar Runga, had registered however not joined for the meeting. I now invite our 10th speaker shareholder, Mrs. Yasmin Pittalwala, to please speak. Mrs. Pittalwala, can you please turn on your audio and video and go ahead, please.
Good afternoon. Respected chairman, Mr. Rajiv Kumar, sir, and also respected Mr. Kekri, sir, managing director and CEO, Mr. Sashidhar Jagdishan, sir, respected members of the board of directors, fellow shareholders, and everyone present here today. It is a privilege to be part of this 32nd annual general meeting of HDFC Bank. I would like to sincerely congratulate the entire management and team for presenting such an impressive annual report. The report reflects the bank's strong performance, transparent governance, strategic vision, and continued commitment to creating long-term value for all its stakeholders. I would like to express my sincere gratitude to the chairman, the board of directors, the managing director and CEO, and the entire management team and group head, Mr. Ashish Parasa Sati, for their leadership, dedication, and hard work. Their efforts have played a vital role in strengthening the bank and taking it forward. I also thank my fellow shareholders for their continued trust and support. I am confident that under the guidance of the board and the leadership of the management, HDFC Bank will continue to achieve greater milestones in the years ahead. Lastly, my special thanks to the company secretary, respected Mr. AJ Agarwal, sir, deputy company secretary, Mr. Nasha, who have always been there to help and support shareholders. Besides being a shareholder, as a customer of HDFC Bank, me and my family, and all the customers, get the best service and help from HDFC Bank branches. Specially, I get from my home branch, that is Kaba branch, under the leadership of zonal head Mr. Adita Deshpande, Mr. Punker set, cluster head Miss Nihara Aurora, my branch manager Mrs. Artri Sharma, and a professional team. Also, the operations head Mr. Sushil and my RM Mr. Moil Sha is there who always resolves and do everything for us. Thank you, and my best wishes to the entire HDFC Bank family. Thank you everyone for hearing me patiently.
Thank you. Our 11th speaker shareholder is Mrs. Shobana Sudir Ma. Mrs. Ma, kindly speak.
Hello. Can you hear me? Yes. Respected chairman, Shri Rajiv Kumar, sir, MD and CEO, Shri Sashidhar Jagdishan, sir, deputy MD, Shri Keshad, sir, COS, directors, Rajiv Kumar as chairman, sir. So good. Anyway, one to one, face to face, sir. E-notice or annual report, colorful, informative, colorful graphs, photographs, total number of pages 629 annual report. So, department, very well done, very good. Keep it up. Excellent or encouraging performance. Page number 46 and 47 balance sheet. Most of the parameters: balance sheet size, PA, earning per book value, short. Page number 238 and 239, has to bonus, 50 total dividend. So, of directors. Very good. Keep it up, sir. Department, more than 100 defaulted party as per. So, fully support performance better already. Good. I wishing you all the best for the future success. All sir, lastly meeting department. Thank you very much. All the best.
Thank you. I now invite our 12th speaker shareholder, Mr. Gonuru Red, to please speak.
Respected chairman, Mr. Kekri, and managing director and CEO, Mr. Sashidhar Jagdishan, sir, new chairman Rajiv Kumar, sir, all the board of directors, especially Hasmukh Adhia and others, and CFO, our company secretary Ajay Agarwal, sir, all other scrutinizers, moderator, my fellow shareholders, good afternoon. My name is Gondur. I'm attending this from Hyderabad as a proud shareholder of HDFC Bank and a happy customer of HDFC Bank. First of all, I sincerely thank the company secretary and entire secret team, especially Mali ma'am, for promptly sending the technical annual report. After my request, you received it immediately. Your professional and courtesy and shareholder-friendly approach deserve very good appreciation to the entire team. It's not an annual report; it's like a magazine with this information. Chairman sir, your opening speech was inspiring, filled with confidence. It reflects the strong values and vision of HDFC Bank. I congratulate management for maintaining world-class corporate governance and high ethical standards, transparency, accountability, and regulatory compliances. My board truly acts as the guardian of shareholders' interest, guardians of our customers. Thank you and salute to you. And also, the annual report is one of the finest reports received. It is beautifully designed with excellent photographs, detailed business information, the financial highlights, and it has a clear road map for the future. Thank you and transparent and easy to understand, sir. Chairman sir, page number eight, the smiling photograph creates a very positive feeling. Thank you, sir. Please keep smiling and inspiring shareholders, sir. And similarly, sir, your photograph also reflects the confidence and positivity under your leadership. The bank continues to grow strongly despite the challenging economic environment. Congratulations to your entire leadership team, sir. Thank you, sir. And also, it is successfully completing 30 years of listing on the national exchange, a special occasion, pages 445 beautifully presented. Likewise, the landmark journey from 1977 to 202, pages 38-39, is very wonderful to reflect the rich legacy of our bank, sir. Congratulations. And also, you are doing society pros activities, philanthropy activities initiatives, especially sanitation, education, healthcare, women empowerment, and also support to government schools. This is very good, sir. The impact is across India, meaningful social impact. As a customer, I would like to appreciate the excellent service provided by Mr. T Morti, branch manager of Prakuta and Hyderabad, whenever I require assistance, and his team to prompt professional and customer-friendly support. Thank to them. Thank you for the financial performance, conservative, and this detailed digital leadership and artificial intelligence-driven banking initiatives and many national international awards received during this year. Sir, especially our symbol trust, financial strength, customer service, and relationship banking. HDFC Bank is truly serving the financial needs of millions of Indians while contributing to India's economic growth and financial inclusion. As we are celebrating independence in this month, sir, my question, sir, now, sincerely request board include the photographs of the company secretary in the future annual report along with the other keys of company also. So this is a suggestion, sir, my personal view. And second question: artificial intelligence is our theme of this year, right, and harnessing AI in banking, the cover page. So what is the bank's future plans for expanding artificial intelligence in customer service and especially fraud detection, cyber security, the management and all operation efficiency while protecting our customer privacy? Sir, another question: what are the strategic priorities for maintaining leadership in digital banking over 3 to 5 years? Fourth question: could you please share the outlook on credit growth, deposit mobilization, asset quality, and profitability for financial year 27, sir? And yes, I don't have any other questions. If any question, security is always reachable through the email and all, so I don't want to waste my time here. So my voting has been done, support all the resolution. No question from the financials, sir. The chairman, sir, and board directors and management team, we have 100% faith on you, trust on you, we're willing. You are the guardians of my bank, so all the employees have been India's the most trusted financial institution. So as shareholders, we have the trust and confidence in my bank to continue to achieve greater heights with sustainable value for the shareholders, sir. Thank you, ma'am. Really amazing the quality. She having her professionally. I request if you have any positive things, please appreciate her and promote her, sir. Both his employ so pray God to give more wisdom. I'm
I'm sorry to interrupt. Request you to sum up your questions so that we can give opportunity to other speaker shareholders as well.
God bless you, sir. God bless you. Thank you so much.
Branches are abroad, revenue in terms of dollar payment because dollar rises day after day against the rupee. I am happy to see the 10-year financial highlights which gives all the details of the company from year to year for 10 years, namely PBT, PAT, key ratio analysis, book value, dividend payout ratio. Rest all questions have been asked by my predecessor shareholders, I don't want to repeat. And I end my speech wishing you personally, all the board members and more importantly all the employees, all the very best. We are in the midst of a festive season, so I wish each one of you all a very happy festive season. Please sir, thank you very much. Good health, good luck and goodbye.
Thank you. I now invite our 28th speaker shareholder Nha Garodia to please speak. Kindly unmute your audio.
Uh good afternoon chairman sir and members of the board. I am Niha Garodia, a proud shareholder of HDFC Bank and a member of Millennium Mams, an organization focused on financial literacy for women. Sir, my question to you is we have been building provision buffers and adding up large amounts in sports. Is there a point where continuing to build it becomes overly conservative rather than prudent? And my second question is branches are clearly driving your deposit growth and gold loan momentum even as transactions go almost entirely digital. What is the actual payback period on a new branch today? And is that economics improving or getting tougher as you go deeper into semi-urban and rural markets? Thank you so much sir.
Thank you. I now invite our 29th speaker shareholder Mr. Asi Basana to please speak.
Chairman sir can you see me and hear me?
Uh good afternoon chairman sir respected directors and my fellow shareholders. It's always a pleasure to address this gathering. As a shareholder, I would like to begin by acknowledging the steady discipline and thoughtful manner in which the bank has navigated the year in a constantly evolving landscape. The bank's ability to uphold strong governance, maintain financial prudence, and demonstrate agility deserves appreciation. What truly stands out is the leadership team's commitment to doing what is right rather than what is easy. Whether through transparency in regulatory matters, enhancements in digital infrastructure, or an unwavering focus on customer trust, every step reflects maturity and long-term vision. The action taken by the independent directors in MSRDC matter is also commendable. As a shareholder, I take quite pride in seeing the bank strengthen its foundation year after year. Sir, if I may, I wish to share one constructive suggestion. We often observe that many government related payments and flows are muted primarily rooted through public sector banks. As a leading private sector institution and given HDFC Bank's strong digital capability, wide reach and proven reliability, it would be wonderful if over time the bank could explore to participate in this channels as well. I hope our chairman new chairman will take action on this. How does the bank plan to balance rapid technological advancement with equally critical need for human centric banking, especially for senior citizens and smaller customers who continue to rely on personal interactions? Thank you once again for the opportunity to share my thoughts. My best wishes to chairman, the managing director and entire leadership team. May the bank continue to grow with integrity. Integrity. I would also like to extend my best wishes to Mr. Kei Mystery and Mr. Kaiz Bharucha. Mr. Mystery, you are the leader of exceptional clarity and grace. You embody humility, wisdom, and unwavering principles. Your presence reassures, your words enlighten, and you will continue to inspire generations. Mr. Kazad bucha, in every storm your come becomes our guide, a steady voice when tides begin to rise. We with quiet strength and wisdom by your side, you lead the bank with clarity and wise insight. Mr. Bucha, your presence is that quiet flame that shapes resilience without seeking fame. Thank you very much and all the best for the future.
Thank you. I now invite Mr. Mjit Singh to please speak.
DFC bank management team or my coach. Good evening sir. Director HDFC newsman. Leadership marketenior deposit. Medic result. MS RDC system. 1.7 billion Department Valentine. Thank you for the management team. Thank you for the strate team. Thank you sir. Thank you.
Thank you. I now invite our 31st speaker shareholder Mrs. Sushma Chandanda to please speak.
Okay. I cha joint with Sushma. Uh sir not clear or charges. Bankology.
Thank you. I now invite our 32nd speaker shareholder Mr. P. Shams Sundari to please speak.
Sir, can you hear me sir? Am I auding?
First of all, I congratulate the management on the eve of 32nd annual general body meeting. Sir trust all is well with you and your family in this challenging situation. Bank deserves much more respect than the current market cap after completing more than a decade of successful operations, profitability and becoming one of the strongest brand in the respective segment. And I would request the bank. So what proactive steps the bank taking to recover the NPA? Because NPA is a very big drawback for a banking industry. So how what proactive cells the management taking to recover the same? And the bank has a very good corporate governance practice, the company security and entire team are always reachable to the investors for any clarification. So we are really thankful to the entire board of directors for the sincere efforts in bringing the bank to this particular direction and rewarding the investors in large numbers. Nothing much to ask. I wish the bank and the board of directors a great success and prosperity in the coming future. I would also request you to kindly consider hybrid ATMs in the years to come. It will help the investors to join physically as well as virtually. Nothing much to ask sir. Hope that the bank takes all our questions in the right spirit. Thank you and thank you for giving this opportunity.
Thank you. I now request Mr. Rishab Jen to please speak.
Mr. Jen. Yes, please go ahead.
Okay, good afternoon chairperson sir, all the board of directors, the entire staff as well as my fellow shareholders who are there in this meeting. First of all, I would like to thank to provide me this opportunity to connect here. As we already know, our bank is already one of the largest banks globally and India's largest private bank. So there are not much questions that I have. What I would like to know is that what are the major steps that the bank is taking to meet the sustainable finance targets. Now it is a globally known fact that almost all the major finance organizations throughout the world are focusing on sustainable targets and carbon offsetting programs. So how is our bank focusing on this and apart from that what are the plans that the bank is taking to protect its customers through the entire sustainability chain, be it climate related or data related or cyber security related steps that the bank is taking. Lastly I would like to thank again for providing me this opportunity to speak as we already know that Mr. Rajiv sir has already achieved great feats in his previous achievements and we expect the same here in this bank as well. I would also like to thank madame bashali as well as sir agraal sir for providing me the opportunity to connect here on this forum. I would also like to take this opportunity to ask for a momentum if we can get so that to maintain it as a memory to be a part of this AGM and to put forward our queries directly in this AGM. Thank you once again and all the best for the future.
Thank you. I now request Mr. Aayush Gupta to please speak.
Namaskar sir chairman sir. Excellent chairman sir. Sir, thank you.
Sir, thank you. I now request our 35th speaker shareholder Mr. Sarjit Singh to please speak.
Hello chairman sir. Can you hear my voice?
Uh yes please go ahead Mr. Singh.
Chairman sir first of all good evening to you all the board of directors all the staff of bank limited and my co shareholders. Bank. Bank chairman. Thank you sir. Thank you so much.
Thank you. I now request our 36 speaker shareholder Rajni Gupta to please speak.
Our 37th speaker shareholder is Mr. Ashit Kumar Patak. Mr. Patak, kindly unmute yourself and go ahead with your question, please.
Yes, you are. Please go ahead.
Yeah. care. Good evening respected chairman, board of directors, company secretary, fellow members joining at the second AGM of HDFC Bank Limited. My name is Shashit Kumar Puk joining from Kolkata. At first my extreme gratitude to our company secretary Mr. AJ Raal and enter secretarial team for sending me the digital annual report and notice very well in advance and allow me to speak. Sir, a request if possible send the hard copy of annual report prior to AGM that would be very convenient for study the entire balance sheet but in digitally I have just studied the balance sheet. Just I have noted the very strategic points if you allow me to speak. Thanks to our new part-time chairman Mr. Ajit Kumar for joining my company's board and in my view his presently good health and successful his cheering to my bank as well as my gratitude to our ex part-time chairman Mr. Chakraorti and pray to God for his good health. And sir you nicely explained the entire strategies of my bank very very nicely sir. I have noted the very point and very nicely you have presented very transparent way. Now coming to my points: excellent financial performance, deposit growth 14.4%, 4% advances also growth point 1%. Also EPS has gone to rupees 48.62 against 44.15%. Balance sheet size growth near about 11.6%. And GNPA nicely achieved 1.15%, excellent cost to income ratio near about 30%. And capital adequatia ratio is 19.7. Excellent. And also rewarded members is the 1 is to 1 share and dividend per share 15.50 and profit after tax nicely growth to 10.9%. Beyond this all the challenge and at present also profit after tax 74,000,671 crores. Now coming to my first point: three years post merger with AGFC limited, what is the current cross-selling penetration rate among the new to bank home loan customers who open savings accounts and what are the long-term targets for realizing this portfolio synergies? Share your thought. In with high employee attition rate reported at 23.12%, what specific retention frameworks and talent redeployment strategies and employee wellness initiatives are being deployed across backend and customer-facing roles? Share your thoughts. How does my bank plan to scale its small and mid-market segments specially maintaining our top three MSME lender ranking across 25 states while managing asset quality and turnaround times? Share your thoughts. With 98% of all financial transunction also mentioned 99% loan digitally transaction contacted, in my view what contingency frameworks and infrastructure resiliency measures are in place for the newly certified green data center and prevent systematic technology disruption? Share your thoughts. In respect to customer query resolution that is CQR, what is the current status of implementation for project CQR for grievance management and how significantly has it improved autocl classification and complaint resolution speed with AI integration? Because we are harnessing at PI banking in initially it mentioned. Can my bank management team elaborate on the operational efficiencies that drove the cost to income ratio down to 33 38% financial year at 26 from 40.5%? How are the digital onboarding platforms like Pixel and PayP contributing to unassisted digital customer acquisition and what milestones have been achieved in monthly active engage customer engagement? Share your thoughts about this. Given the headline the retail inflation overseas 21% during the year while RBI estimate it to be inch up to 5.1% financial year 27.
I'm sorry to interrupt Mr. Patak, requested to sum up your questions so that we can give opportunity to other speaker shareholders as well.
Only two points ma'am if you allow me to speak. How does my bank plan to protect NIM and manage deposit repricing pressure and only two points. Also HDFC bank has 6.5% absorb USD FS center deposit 6.25%. What as on 31st at 31st June 2026 our total deposit mobilization in FCNR B? Share your thoughts about this that the hedging also cost maintained by RBI. And my final question: can my bank's management team evolve ilarate on the specific findings and conclusion derived from independent review conducted by the external law firms regarding ing matters raised in the resignation and letter of our former chairman who have impacted the market cap of the HDFC bank and stock price. I pray to god for your good health and prosperity of my bank. Namaste. Thank you sir.
