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HDFC Bank CEO Sashidhar Jagdishan Raises Concerns Over Funding Risk Post Merger At AGM

By, Muhd. Faizan

Date - 13/08/2023

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HDFC Bank CEO Sashidhar Jagdishan raised concerns over funding risk post merger at the bank's annual general meeting (AGM) on August 12, 2023.

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Jagdishan said that the merger with HDFC has created a larger entity with a wider range of liabilities, which could make it more difficult to raise funds in the future.

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He also said that the bank is facing competition from other lenders, which is also putting pressure on its funding costs.

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Jagdishan said that the bank is taking steps to mitigate the funding risk, such as raising capital and diversifying its funding sources.

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However, he warned that the bank will need to remain vigilant in order to manage the funding risk effectively.

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The concerns raised by Jagdishan come at a time when the Indian banking sector is facing a number of challenges, including rising inflation and interest rates.

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The funding risk could pose a serious threat to HDFC Bank's profitability and growth prospects.

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However, the bank has a strong track record of managing risk, and it is likely to be able to weather the current challenges.

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