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HDFC Bank Margins to Recover Next Quarter Says Sashidhar Jagdishan
- •HDFC Bank expects net interest margins to turn upwards from the next quarter as the interest rate trajectory changes.
- •Outgoing CEO Sashidhar Jagdishan stated that margins faced pressure in the September quarter, hitting a low of 3.16 percent.
- •The bank reported a net profit of 19510 crore rupees for the September quarter, marking a 4.7 percent increase year-on-year.
- •Anup Bagchi is set to take over as managing director and CEO after Jagdishan's term ends on October 26.
- •Jagdishan expressed full confidence in the leadership depth and institutional continuity of HDFC Bank under incoming management.
Key Questions Answered
HDFC Bank's net interest margins declined to 3.16% in the September quarter down from 3.26% in the June quarter as margins came under general pressure. However, outgoing CEO Sashidhar Jagdishan expects margins to turn upwards and recover from next quarter as the interest rate trajectory turns upwards and links a large part of the loan book to external benchmarks.
Anup Bagchi is set to take over as managing director and chief executive officer of HDFC Bank after Sashidhar Jagdishan's term ends on October 26. Bagchi is a seasoned financial services professional with 34 years of experience across banking and insurance.
HDFC Bank reported a standalone net profit of ₹19,510 crore for the September quarter, which is up 4.7% year-on-year. Additionally, net interest income rose 9.7% year-on-year to ₹34,620 crore during the same period.
