Mumbai, April 19 -- HDFC Bank expects its credit-deposit (CD) ratio to return to pre-merger levels of 85-90% by FY27, as India's largest private sector lender intensifies efforts to grow deposits faster than loans. The strategy is part of the bank's post-merger recalibration following its integration with HDFC Ltd in July 2023.

In an earnings call following its March quarter results, chief financial officer Srinivasan Vaidyanathan said the bank will continue aligning its deposit rates with the broader market in a declining interest rate environment, while focusing on expanding its distribution network to gain deposit market share.

"We still remain competitively priced among the various large five banks. That means there is no particular...