5 Things Rajiv Kumar Addressed at HDFC Bank’s 32nd AGM

HDFC Bank held its 32nd Annual General Meeting (AGM) recently, where Rajiv Kumar, Part-Time Chairman and Additional (Independent) Director, addressed shareholders in his first speech as Chairman. He opened by acknowledging the Bank’s legacy and reaffirming that its ethos and internal control systems would be further strengthened.

Kumar covered the global and Indian macroeconomic backdrop, the Bank’s FY 2025-26 financial performance, the Board’s response to the former Chairman’s resignation, six factors underpinning the Bank’s next growth phase, its financial inclusion and ESG commitments, and its people and workforce metrics. He concluded by saying that the Bank has no systemic governance concerns and remains committed to integrity, transparency and accountability.

Here are five key takeaways from his address: 

1. Governance Review Found No Systemic Concerns

Kumar addressed the Board’s response following the resignation of the former Part-Time Chairman, stating that the Board engaged domestic and international external law firms, overseen by a special committee of Independent Directors, with findings disclosed to stock exchanges on June 26, 2026. He said large institutions may encounter issues from time to time, but that these must be addressed in a timely and transparent manner. “Let me reiterate, on my behalf and on behalf of the Board, that the Bank is fundamentally strong, with a pristine balance sheet. There are no governance related concerns at the systemic level,” he said. 

He added that control functions will remain empowered with zero tolerance toward unethical practice. “Needless to add that, a policy of no tolerance, repeat no tolerance towards any kind of deviation from the established policy regime will be followed,” he said.

2. Double-Digit Growth Amid Margin Pressure

Kumar said India grew 7.6 per cent in FY2025-26, with the RBI projecting 6.6 per cent growth and 5.1 per cent inflation for FY2026-27. On the Bank’s own performance, Profit After Tax grew 10.9 per cent to INR 74,671.3 crore. Advances grew 12.1 per cent to INR 29.37 lakh crore, against 5.4 per cent the previous year, while Deposits rose 14.4 per cent to INR 31.05 lakh crore, ahead of the system’s 11.5 per cent. Cumulative repo rate cuts of 1.25 per cent between February and December 2025 led assets to reprice faster than deposits, impacting Net Interest Margin. The Bank issued its first-ever 1:1 bonus shares, and total FY26 dividend stood at INR 15.50 per share, combining a special interim dividend and final dividend.

3. Six Factors Driving the Bank’s Next Growth Phase

He outlined six sources of confidence.

• Strong performance through economic cycles, with incremental deposit market share gains. 
• Merger synergies with HDFC Limited, with cross-sell strengthening. “Over 95% of new‑to‑bank home loan customers now open Savings Accounts with us, strengthening primacy,” he said. 
• MSME leadership, with the Bank ranked No. 1 in 15 states and in the top 3 across 25 states, holding over 20 per cent market share. 
• Distribution expansion, with over 4,000 branches added in five years, half in semi-urban and rural areas. 
• Technology modernisation, including GenAI embedded enterprise-wide through the in-house platform Neev. “We have made deliberate and forward‑looking technology investments,” he said. 
• Continued reinvestment. “We will continue to reinvest in technology and operating platforms, lifting productivity, enhancing customer experience, and ensuring our systems remain future‑ready,” he said.

4. Financial Inclusion and ESG Commitments

Kumar said the Bank added one new state for government tax collections, taking coverage to 11 states, and has extended over INR 1 lakh crore in loans under the Pradhan Mantri Mudra Yojana. It has opened 58.8 lakh PMJDY accounts and enrolled 1.28 crore customers in social security schemes since inception. Its CSR programme, Parivartan, spans all 28 states and 8 Union Territories, reaching over 11,000 villages including 498 border villages. The Bank’s sustainable finance portfolio comprises about 28 per cent of its total book, with a target of carbon neutrality in operations by 2031-32.

5. Workforce Growth and Closing Remarks

Kumar thanked the Bank’s over 2.11 lakh employees, citing 1.36 crore learning hours in FY26 and a gender diversity ratio of 26.6 per cent. He closed by reaffirming the Board’s commitment to the highest standards of governance. “The Board will ensure that control functions remain fully empowered to have zero tolerance towards any unethical practice, which will be dealt with speed and firmness on a case-to-case basis,” he said.