HDFC Bank Q1 advances grow 15.8%; deposits up 19.2%

Shares of HDFC Bank ended over 3% lower on Wednesday, snapping five sessions gaining streak, after the country’s largest private sector lender in terms of market capitalisation released its first quarter business update. The lender, which recently merged with HDFC, has posted 15.8% growth in advances to around ₹16.15 lakh crore for the quarter ended June 30, 2023, compared with ₹13.95 lakh crore in the same period last year. Sequentially, the advances grew by 0.9% from ₹16 lakh crore as of March 31, 2023.

“Gross of transfers through inter-bank participation certificates and bills rediscounted, the bank’s advances grew by around 20.2% over June 30, 2022 and around 1.9% over March 31, 2023,” HDFC Bank said in a BSE filing.

The domestic retail loans grew by around 20% over June 30, 2022, and around 4% over March 31, 2023, while commercial & rural banking loans grew by around 29% YoY and nearly 2% QoQ. The corporate & other wholesale loans posted a growth of 11% YoY, while it dropped nearly 1% QoQ.

As per the exchange filing, the bank’s deposits rose by 19.2% YoY to ₹19.13 lakh crore in Q1FY24, as against ₹16.04 lakh crore in the corresponding period last year. Sequentially, the deposits climbed by 1.6% over ₹18.83 lakh crore as of March 31, 2023. Retail deposits increased by around ₹38,000 crore during the quarter, and grew by around 21.5% over June 30, 2022 and around 2.5% over March 31, 2023; wholesale deposits increased by around 9% YoY and fell by 2.5% QoQ.

During the quarter under review, the bank’s current account and savings account (CASA) deposits stood at ₹8.13 lakh crore, up 10.7% YoY and lower by around 2.7% QoQ. Retail CASA grew by 11% YoY and dropped by around 2% sequentially. The Bank’s CASA ratio stood at around 42.5% in Q1FY24, as compared to 45.8% in Q1FY23, and 44.4% in Q4FY23.

In June 2024 quarter, HDFC Bank purchased loans amounting to ₹11,632 crore through the direct assignment route under the home loan arrangement with its parent company, HDFC.

HDFC Bank also shared the merged balance sheet of HDFC Bank and HDFC (referring as the ‘merged entity’). HDFC merged with HDFC Bank on July 1, while the record date for the amalgamation of the country’s largest mortgage lender with its subsidiary HDFC Bank is July 13.

The merged entity’s gross advances stood at ₹22.45 lakh crore as of June 30, 2023, up 13.1% over ₹19.85 lakh crore in the same period last fiscal, and 0.7% over ₹22.30 lakh crore in the March 2023 quarter. The deposits stood at ₹20.63 lakh crore in Q1FY24, up 16.2% YoY and 1.2% QoQ.

The merged entity's average liquidity coverage ratio stood at around 120% on a proforma basis during the quarter under review.

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