HDFC Bank Adds ₹1.2 Lakh Crore in September Quarter, Deposit Growth Surges 15% with CASA and Retail Loans in Focus

HDFC Bank, India’s largest private sector lender, has continued to grow its deposit base aggressively, adding over Rs 1.2 lakh crore in deposits during the September 2024 quarter, according to provisional figures. This reflects a 15.1% year-on-year increase, bringing its total deposits to Rs 25 lakh crore. Sequentially, deposits grew by 5%.

Pranav Gundlapalle, head of India financials at Bernstein, commented that the numbers look positive. He added, “If margins remain stable despite slower loan growth, it would reinforce confidence in a faster normalization. A significant reduction in borrowings could even improve margins further.”

As of September 30, 2024, HDFC Bank’s CASA deposits stood at Rs 8.83 lakh crore, growing by around 8% on an annual basis, while time deposits were Rs 16.16 lakh crore, up by approximately 19.3%.

The bank’s total advances for the quarter increased by 7% to Rs 25.19 lakh crore. Advances under management, which includes instruments like inter-bank participation certificates and securitized loans, grew by 8% to Rs 26.33 lakh crore. The bank also securitized loans worth Rs 19,200 crore during this period.

Suresh Ganapathy, head of financial services research at Macquarie Capital, noted that slower loan growth was due to a reduction in corporate lending. “The bank had previously indicated a strategy of selling down certain corporate loans, which likely contributed to the slowdown in that segment. However, there was robust growth in commercial and rural banking, with retail loan growth being more moderate.”

In the quarter, HDFC Bank saw retail loans increase by around Rs 33,800 crore, commercial and rural banking loans by Rs 38,000 crore, while corporate and other wholesale loans dropped by Rs 13,300 crore compared to the June 2024 quarter.