HDFC Bank has announced plans to expand its loan book at a slower rate compared to its deposit growth, aiming to reduce its credit-deposit (CD) ratio. The bank?s decision is part of its strategy to manage liquidity and ensure a more balanced growth trajectory amid fluctuating market conditions. In recent times, HDFC Bank has witnessed a significant increase in its deposit base, driven by robust customer inflows and a growing preference for safe investments. To address the disparity between deposit and loan growth, the bank will focus on a more conservative approach to lending. The move comes as part of HDFC Bank's broader strategy to enhance its financial stability and maintain a strong liquidity position. By slowing down the pace of loan disbursement, the bank aims to better align its credit growth with deposit inflows and improve its overall financial health. The bank?s CD ratio has been a focal point for investors and analysts, as it reflects the proportion of deposits that are utilised for lending. A higher CD ratio indicates a greater use of deposits for loans, which can impact liquidity. By reducing this ratio, HDFC Bank seeks to strike a balance between growth and stability. Overall, HDFC Bank?s approach highlights its commitment to prudent financial management and strategic planning, ensuring that it remains well-positioned to navigate market challenges and sustain long-term growth.