HDFC Bank loans rose 21.5% YoY in Q1 to Rs 13.95 trn, deposits up 19.3%

Retail loans grew by around 21.5 per cent YoY in Q1 and approximately 5 per cent on a sequential basis, HDFC Bank said

India’s largest private lender HDFC Bank reported a 21.5 per cent year-on-year (YoY) growth in advances to Rs 13.95 trillion in Q1 of FY23. Advances were to the tune of Rs 11.48 trillion on June 30, 2021.

On a sequential basis, the bank’s loans grew 1.9 per cent from Rs 13.69 trillion on March 31, the lender informed the exchanges.

As of June 30, HDFC Bank’s deposits saw a YoY rise of 19.3 per cent to Rs 16.05 trillion from Rs 13.46 trillion a year ago.

On a quarterly basis, the bank’s deposits climbed 2.9 per cent from Rs 15.59 trillion as of March 31.

“While Q1 is generally weak for the lending space, HDFC Bank’s QoQ (quarter-on-quarter) growth was a tad softer. This led to lower LDR (loan-to-deposit ratio), which could be a drag on NIM (net interest margin),” said Gaurav Jani, research analyst at Prabhudas Lilladher.

He added, “However, retail share improved QoQ from 38.5 per cent to 40 per cent. This also suggests that in Q4 of FY22 some part of the current quarter growth was up-fronted, which would have been lower yielding.”

HDFC Bank’s current account savings account (CASA) deposits aggregated to around Rs 7.35 trillion as of June 30. This reflects a growth of around 20.1 per cent from Rs 6.12 trillion a year ago.

However, on a sequential basis, HDFC Bank’s CASA deposits fell 2.2 per cent from Rs 7.51 trillion on March 31.

Apart from HDFC Bank, six other lenders have released provisional figures on advances and deposits to the exchanges up to July 4. These are AU Small Finance Bank, Federal Bank, IDFC First Bank, IndusInd Bank, CSB Bank and Bank of Maharashtra.