Questions across 2 calls

Chintan Joshi

Autonomous Research

Axis Bank Limited

Axis Bank Limited CC-Mar25.pdf · 2025-04-25

Hi, good evening. Thank you for taking my questions. Can I start with some commentary around how to think about the rate cut cycle and the translation of that into your NIMs. Specifically, I am interested in how we should think about transmission on your borrowings and on your SLR investment portfolios, if you can help us think about those two, loans and deposits is kind of well understood, so I am curious about borrowings and investments here. And then the second question would be, on your growth, you flagged a 7% month -end balance growth, how much of that month-end balance has been retained to date, they tend to kind of flow away post quarter end, but sounds like things might have been a little bit more stickier, given that you're flagging that. Those two would be my questions, thank you.

Borrowings and investments or should we take that within your broader comments?

HDFC Bank Limited

HDFC Bank Limited CC-Sep24.pdf · 2024-10-19

Hi, good evening and thank you for taking my question. Can I come on the balance sheet again? So, if I kind of take a few points, you mentioned that there is limited optionality on repaying the borrowings, you are doing more securitizations which also reduce your loan growth rate. That excess deposit that you have. So, for example, this quarter it was 700 on average deposits versus 300 on average advances, kind of gets parked in liquidity. How would you optimize this? If you build up too much liquidity, does that give you a little bit of room to grow your loans a little bit for 1 quarter until the optionality on the borrowing plays out. Is that how we should think about kind of sequentially how you would optimize that balance sheet structure?

So, the bottom line is that if you keep growing deposits faster than loans, we don't hav e any issues with growing liquidity because the pointer is to bulletproof this LDR ratio rather than worrying about the NIMs in the short-term?