Legacy high-cost borrowings from the merged HDFC Ltd. have been weighing on margins and the credit-deposit ratio (CDR). While management has insisted otherwise, if CDR isn’t reined in, it could hold back credit growth. Moreover, reliance on high-cost borrowings weighs on margins. The stock had dropped 15% in 2026 even before the controversial resignation of former chairman Atanu Chakraborty on 18 March.
