August 10, 2025

Mumbai: At HDFC Bank's lively annual general meeting, MD & CEO Sashidhar Jagdishan dropped some serious truth bombs on reverse mortgage loans. "Reverse mortgage loans do not work in the Indian context because of various legal and operational issues," he declared boldly. He added, "I'm not aware of any bank currently offering it. One bank did in the past, but they have stopped. This product is unsuitable for both customers and institutions." For those who wonder, a reverse mortgage allows senior citizens to borrow money against their home without selling it, and then repay the loan with interest when they sell or pass away. But here in India, the idea just doesn’t click due to tricky rules and practical roadblocks, despite being introduced following the National Housing Bank’s guidelines. But the bank’s future looks super bright with technology leading the charge! Jagdishan enthusiastically revealed ongoing tech upgrades including a fresh new mobile app and net banking interface. "The new mobile app is being deployed... the migration into the new mobile app will be completed for a lot of customers before the fiscal year is up," he promised. That's right — your banking app experience is about to get a shiny new makeover! And there's more – the bank is also revamping its website and choosing to build platforms with in-house teams instead of outside vendors. Talk about keeping it close to home! Hold onto your hats because HDFC Bank is also diving into generative AI to boost process re-engineering, operational efficiency, and customer service. But don’t worry, Jagdishan made it crystal clear: "We are focusing on the guardrails... used only for basic, mundane activities in the initial phase, not to substitute human judgment." The bank believes humans still hold the real power when it comes to smart decisions. When asked about the bank’s growth and net interest margin journey after the big merger, Jagdishan revealed that boosting deposits to improve credit-deposit ratio came "at the cost of low-cost current and savings account (CASA) deposits." So, while the bank moves forward, it’s balancing cost and growth carefully. In short, while reverse mortgages may be a no-go, HDFC Bank is charging ahead with tech wizardry and smart strategies to delight customers across India!

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Tags: Hdfc bank, Reverse mortgage, Sashidhar jagdishan, Mobile app, Generative ai, Banking technology,