HDFC Bank Q4 advances grow 16.9% YoY; deposits rise 20.8%

HDFC Bank, the country’s largest private sector lender, has posted a 16.9% year-on-year (YoY) rise in advances in the fourth quarter ended March 2023 (Q4 FY23), supported by broad-based growth across retail, and commercial and corporate loan books. The lender’s advances stood at ₹16,00,500 crore as of March 31, 2023, as compared to ₹13,68,800 crore in the same period last year. On the sequential basis, advances increased 6.32% from ₹15,06,800 crore in the December quarter of FY23, HDFC Bank said in its quarterly business update released on the bourses on Monday.

“Gross of transfers through inter-bank participation certificates and bills rediscounted, the bank’s advances grew by around 21.3% over March 31, 2022, and around 6.5% over December 31, 2022,” HDFC Bank said in a BSE filing.

As per the bank's internal business classification, domestic retail loans grew around 21% over March 31, 2022, and around 5% over December 31, 2022. The commercial and  rural banking loans grew by nearly 30% YoY and around 9.5% sequentially; and corporate & other wholesale loans climbed by around 12.5% YoY and by around 4.5% on quarter-on-quarter (QoQ) basis.

During the quarter under review, the bank’s deposits aggregated to around ₹18,83,500 crore, a growth of around 20.8% over ₹15,59,200 crore in the corresponding period last year. Sequentially, it increased by 8.7% from ₹17,33,200 crore as of December 31, 2022.

Segment-wise, retail deposits increased by around ₹1,06,700 crore during the quarter, and grew around 23.5% YoY and around 7.5% QoQ. The wholesale deposits also rose by 10% YoY and by 15.5% QoQ.

The bank’s CASA deposits, the amount of money that gets deposited in the current and savings accounts of bank customers, stood at around ₹8,36,000 crore in Q4 FY23, a growth of around 11.3% over ₹7,51,000 crore in Q4 FY22, and a growth of around 9.6% over ₹7,63,000 crore in Q3 FY23.

Retail CASA (Current Account Savings Accounts) rose by around 12.5% over March 31, 2022 and around 7.5% over December 31, 2022. The bank’s CASA ratio stood at around 44% as of March 31, 2023, as compared to 48.2% as of March 31, 2022 and 44% as of December 31, 2022.

The board of HDFC Bank is scheduled to meet on April 15 to consider and approve audited financial results for the fourth quarter and year ended March 31, 2023.

For the third quarter of FY23, the Mumbai-headquartered bank reported posted a 19.9% YoY growth in consolidated net profit to ₹12,698 crore on the back of strong improvement in interest income as well as lower provisions. The net interest income (NII) climbed 25% YoY to ₹22,987.8 crore, supported by rise in lending rates following RBI’s interest rate hikes. On the asset quality front, the banking major saw its gross non-performing asset (NPA) ratio falling to 1.23% from 1.26% in the year-ago period. The net NPA too declined to 0.33% from 0.37% in the same period last year. However, on a sequential basis, the NPA ratios were flat. The bank’s provisions and contingencies fell marginally to ₹2,806 crore in Q3 FY23 from ₹2,994 crore last year.

Ahead of the Q4 business update, HDFC Bank shares closed trade at ₹1,610.35, up 0.04%, on the BSE.