Retail banking roars as HDFC Bank reports double-digit deposit growth in Q4

HDFC Bank has reported a significant increase in both its advances and deposits for the quarter ending March 31, 2025.

For the March 2025 quarter, HDFC Bank's average advances under management rose by 7.3%, reaching ₹26.955 lakh crore, compared to ₹25.125 lakh crore in the same quarter last year. The bank's period-end advances grew by 7.7% year-on-year, totalling ₹27.735 lakh crore as of March 31, 2025, from ₹25.758 lakh crore in the previous year. This growth was primarily driven by strong performances in retail and commercial banking, which grew by 9% and 12.8%, respectively, over the last year.

However, corporate and wholesale loans experienced a slight dip, decreasing by 3.6% over the same period. The bank also reported a strategic move to securitize and assign loans worth ₹10.7 thousand crore during the quarter, bringing the total for the year to ₹57 thousand crore.

On the deposits front, HDFC Bank saw impressive growth as well. The bank's average deposits stood at ₹25.279 lakh crore for the March 2025 quarter, reflecting a 15.8% increase from ₹21.836 lakh crore in March 2024. A notable highlight was the growth in time deposits, which surged by 21.4% to ₹16.990 lakh crore, up from ₹13.992 lakh crore in the previous year. This suggests a growing customer preference for time-bound deposits amid fluctuating interest rates.

The bank’s average CASA (Current Account, Savings Account) deposits grew by 5.7% to ₹8.289 lakh crore during the March 2025 quarter, as compared to ₹7.844 lakh crore for the same period in 2024. Meanwhile, the period-end CASA deposits for the bank stood at ₹9.445 lakh crore, up by 3.9% from ₹9.088 lakh crore last year.

The period-end total deposits reached ₹27.145 lakh crore by the end of March 2025, marking a 14.1% increase from ₹23.798 lakh crore in the previous year, while time deposits also rose by 20.3%, reaching ₹17.700 lakh crore.

According to the company, the bank's performance in Q4 FY2025 underscores its robust financial health, driven by sustained demand for loans across retail, commercial, and rural banking, as well as increased customer confidence reflected in higher deposits.