“Our focus is on enabling our people to work more productively, and with greater alignment to our customer needs, leveraging technology,” Jagdishan wrote in his letter to shareholders. “We are consciously redeploying talent from backend functions, where we are able to bring technology-led efficiencies, to customer-facing roles.”
Jagdishan identified cyber fraud and dispute resolution as two priority areas for the bank going forward. “We are accelerating our investments in AI, improving our communications with customers, and empowering our frontline colleagues with better tools and knowledge to tackle the dispute resolution area,” he said.
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On cybersecurity more broadly, Jagdishan noted that the bank has strengthened its defenses as digital threats grow “more sophisticated and less predictable.” He said advances in automation, analytics and emerging AI techniques are shaping both how attacks evolve and how they are detected, prompting the bank to introduce “selective AI-assisted capabilities into our security processes in a phased and responsible manner.” These early initiatives, he said, are improving the speed, context and accuracy of monitoring, helping teams flag unusual activity earlier and respond faster.
Central to this effort has been Neev, HDFC Bank’s in-house foundational AI model. “A key enabler has been the development of our in-house foundational, platform-led model, Neev. This provides a unified base for developing and deploying AI capabilities across the Bank, ensuring consistency, reuse and alignment with enterprise standards,” Jagdishan said.
Branches remain central to customer relationships, particularly in India’s smaller towns and rural markets, Jagdishan said. The bank added 234 branches in FY26, taking its total branch and Digital Banking Unit (DBU) count to 9,689 as of March 31, 2026.Also Read: Kotak Mahindra Bank to pursue acquisitions alongside organic growth
Jagdishan in his address to shareholders also addressed a governance controversy that emerged during the year. Atanu Chakraborty, the bank’s Part-Time Chairman resigned on March 18, 2026, citing governance issues. The bank appointed Keki Mistry as interim Part-Time Chairman and Non-Independent Director, effective March 19, 2026, with approval from the Reserve Bank of India. Chakraborty’s resignation letter had raised questions about governance standards at the bank, the CEO said.
In response, HDFC Bank commissioned an external law firm to investigate the matter. On June 26, 2026, the bank disclosed the findings: the statements in Chakraborty’s resignation letter, and their implications, “were not substantiated by the record reviewed and witness interviews.” Close on the heels of these findings, Rajiv Kumar was appointed Part-Time Chairman and Independent Director of the bank on June 29.