HDFC Bank Expects CD Ratio Decline Amid Loan Growth; PSU Banks Seek RBI Support for State Loans

HDFC Bank reported a credit-deposit (CD) ratio of 98.5% in Q3FY26, with loan growth outpacing deposits, but its management expects the ratio to decline to 90-96% by FY26-end and 85-90% by FY27, aligning with pre-merger levels. Meanwhile, public sector banks have requested the Reserve Bank of India to include state development loans in open market operations to address widening spreads caused by heavy state bond supply, though RBI's past experience may limit such interventions.