HDFC Ltd merger is delivering synergies as cross-selling gathers momentum: Chairman Rajiv Kumar

HDFC Bank said the merger with HDFC Ltd has started delivering tangible business benefits, with cross-selling gaining momentum and the lender strengthening customer relationships through its expanded financial services franchise.

Speaking at the bank's 32nd Annual General Meeting (AGM), Part-Time Chairman Rajiv Kumar said the merged entity is entering a new phase of growth backed by its customer-first approach, technology investments and broader product offerings.

'Meaningful synergies' already visible

Highlighting the impact of the merger, Kumar said, "The merger with HDFC Limited has already begun unlocking meaningful synergies."

He pointed to improving cross-selling between the bank and its subsidiaries, saying, "Cross-sell between the Bank and subsidiaries is healthy, and over 95% of new-to-bank home loan customers now open Savings Accounts with us, strengthening primacy."

According to Kumar, the mortgage business gives HDFC Bank an opportunity to build deeper, long-term customer relationships.

"As we enhance our presence in this segment and leverage on the long tenure and emotional relationship that comes with the mortgage product, the Bank is well poised to become the primary banker for a larger set of customers improving the strength of our franchise," he said.

He added that the combined franchise allows the bank to meet a wider range of customer needs.

"The enlarged franchise also enables us to serve customers across investments, protection products and long-tenure needs more holistically, reinforcing deeper and more valuable relationships," Kumar said.

Bank sees itself at a turning point

Looking ahead, Kumar said HDFC Bank is entering its next phase of growth.

"We see your Bank at the cusp of a change," he said.

He attributed this confidence to the bank's longstanding customer-first philosophy and investments in technology.

"As we look at the next phase of our journey, our confidence is rooted in HDFC Bank's long-standing commitment to a customer-first philosophy and technology-led execution."

He added that "with technology platforms modernized and distribution deepened across India, we stand at a pivotal moment — ready to deliver significantly stronger business outcomes."

Strong operating performance

Looking ahead, Kumar said the bank expects to build on its recent momentum.

"We will continue to reinvest in technology and operating platforms — lifting productivity, enhancing customer experience, and ensuring our systems remain future-ready." He added that the bank would continue to focus on "strategic customer acquisition, strengthened deposit growth, focused retail and MSME lending, and unwavering asset quality."

The AGM remarks come weeks after HDFC Bank reported a mixed performance for the first quarter of FY27. Net profit rose 5% year-on-year to ₹19,059 crore, while net interest income increased 6.7% to ₹33,534 crore. The bank's provisions declined sharply to ₹3,060 crore from ₹14,441 crore a year earlier, although asset quality saw a marginal sequential deterioration, with gross NPA rising to 1.17% from 1.15%.

During the post-earnings analyst call, CEO Sashidhar Jagdishan said the bank had successfully navigated several challenges over the past few months and added that the appointment of the new Chairman had removed uncertainty surrounding the leadership transition.