Bank loans

HDFC Bank loans rose 21.5% year-on-year in Q1 to Rs 13.95 billion, deposits up 19.3%

India’s largest private lender, HDFC Bank, recorded a 21.5% year-on-year (YoY) growth in advances to Rs 13.95 trillion in the first quarter of FY23. of Rs 11.48 trillion as of June 30, 2021.

On a sequential basis, the bank’s lending increased by 1.9% from 13.69 trillion rupees on March 31, the lender informed the exchanges.

As of June 30, deposits at HDFC Bank registered a 19.3% year-on-year increase to reach 16.05 trillion rupees from 13.46 trillion rupees a year ago.

On a quarterly basis, the bank’s deposits increased by 2.9% from 15.59 trillion rupees as of March 31.

“While the first quarter is generally weak for the lending space, HDFC Bank’s QoQ (quarterly) growth was somewhat weaker. This led to a decline in the LDR (loan to deposit ratio), which could be a drag on NIM (net interest margin),” said Gaurav Jani, research analyst at Prabhudas Lilladher.

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He added, “However, retail share improved QoQ from 38.5% to 40%. This also suggests that in the fourth quarter of FY22, some of the current quarter growth was anticipated, which would have resulted in a lower return.”

HDFC Bank Current Account Savings Account (CASA) deposits totaled around Rs 7.35 trillion as of June 30. This reflects growth of around 20.1% from 6.12 trillion rupees a year ago.

However, on a sequential basis, HDFC Bank’s CASA deposits fell by 2.2% from 7.51 trillion rupees on March 31.

In addition to HDFC Bank, six other lenders released preliminary figures on exchange advances and deposits through July 4. These are AU Small Finance Bank, Federal Bank, IDFC First Bank, IndusInd Bank, CSB Bank and Bank of Maharashtra.