New Delhi, April 20 -- HDFC Bank management's focus has shifted from bringing down the loan-to-deposit ratio (LDR) to pursuing credit growth opportunities. In its March quarter (Q4FY26) earnings call, the management stated that LDR is not a constraint, citing similar comments from the Reserve Bank of India (RBI). With the earlier focus on bringing down LDR now behind it, loan growth has picked up substantially. Advances stood at Rs.29.4 trillion in FY26, up 12% year-on-year, a sharp acceleration from 5% growth in FY25.

Although LDR continues to remain elevated at 95% in FY26 (96% in FY25), HDFC Bank is unlikely to pursue its earlier intention of reducing the metric to about 87% in a hurry. This implies investors can expect healthy advanc...