El-Nino, below normal monsoon pose risk for growth, inflation outlook in FY27: HDFC Bank MD

Sashidhar Jagdishan, Managing Director of HDFC Bank, highlighted that risks to the growth and inflation trajectory for the fiscal year 2027 remain elevated due to potential climate disruptions. Specifically, the persistence of El-Nino and the possibility of a below-normal monsoon season are viewed as key domestic headwinds that could impact agricultural output and food prices.

Beyond domestic climate concerns, the banking executive pointed toward external pressures including global trade fragmentation and ongoing geopolitical tensions. These factors contribute to a complex economic environment that requires high levels of vigilance from financial institutions and policymakers.

Jagdishan emphasized that continued prudence and risk management are essential for the sector to navigate financial market volatility. According to his assessment, maintaining a balanced approach to risk will be critical as the global and domestic economic landscape evolves. Source: HDFC Bank Annual Report Statements.