EXECUTIVE SUMMARY. HDFC Bank’s low-cost liabilities strategy of focusing on huge numbers of new client acquisitions in the semi-urban and rural centres may be getting large numbers of new customers, but is not resulting in significant growth in current and savings account deposits (CASA). The pressure on CASA appears to be an industry-wide problem, on account of falling interest rates and the squeeze on corporate liquidity due to the economic slowdown. HDFC Bank believes that growth in customer acquisition can alleviate its situation in the present economic environment. While its strategy may assist the bank in defying the tide, the fact remains that the new CASA liabilities will not be as lucrative as in the past.
Recent Posts
Most Popular
Remembering Napoleon and Dad
Rabindra Kishen Hazari Jr.
Napoleon was very short. He was my father's hero. Dad, Rabindra Kishen Hazari, was also very short, barely 5'3, and he...
Open War in Karnataka Bank as CEO, ED Defy Board
Tucked away in the notes to the 4QFY2025 accounts of Karnataka Bank, a century-old regional private sector bank which once enjoyed a conservative reputation,...
Yes Bank’s Retail Fiasco: The Rot Is at the Top
In June 2024, Yes Bank sacked at least 500 junior staff, mainly in its retail division (as reported by The Economic Times on June...
Ever-Vigilant CRISIL, India Rating Downgrade Firm – After Default
The raison d’etre of credit rating agencies (CRAs) is to anticipate events such as defaults before they occur. With access to companies’ privileged information,...
Farcical Saga of Axis Bank’s Chief Audit Executives
On February 3, Axis Bank got a new Chief Audit Executive (CAE); on February 12, it changed its CAE once again; in six months,...