HDFC Bank's Q3 Gross Advances Surge By 62% YoY To Rs 25 Lakh Crore; More Details Inside

HDFC Bank has reported a surge in its gross advances, reaching Rs 24.69 lakh crore in the third quarter of FY24. This marks a 62.4% increase from Rs 15.21 lakh crore in the previous year, demonstrating the bank's robust performance.

The announcement comes from a regulatory filing by the bank, which further detailed the growth trajectory across various segments. According to the bank's internal classification, domestic retail loans spearheaded the charge, experiencing an astounding 111% growth from December 31, 2022, and a 3% increase over September 30, 2023.

Commercial and rural banking loans also contributed significantly, with an increase of 31.5% and 6.5% YoY and QoQ, respectively. Meanwhile, corporate and other wholesale loans, excluding non-individual loans of the erstwhile HDFC Limited, recorded growth of around 11% and 2% over December 31, 2022, and September 30, 2023, respectively.

The bank's momentum extended beyond advances to its deposit base, which witnessed substantial growth, totalling approximately Rs 22.14 lakh crore as of December 31, 2023. This reflects a 27.7% increase from Rs 17.33 lakh crore reported in 2022, with an additional 1.9% growth from Rs 21.73 lakh crore as of September 30, 2023.

A detailed breakdown of the deposit growth reveals a robust performance in retail deposits, surging by around Rs 5.3 lakh crore during the quarter. This translates to a growth of 28.4% over December 31, 2022, and 2.9% over September 30, 2023. However, wholesale deposits, while recording a growth of 24.4% over December 31, 2022, saw a slight dip of 3.4% over September 30, 2023.

Growth seen in the Current Account Savings Account (CASA) deposits of the bank is noteworthy, reaching approximately RS 8.35 lakh crore as of December 31, 2023. This signifies a 9.5% increase from Rs 7.63 lakh crore in December 2022 and a commendable 2.2% from Rs 8.18 lakh crore as of September 30, 2023. The retail CASA segment grew by 10% over December 31, 2022, and 2.3% over September 30, 2023.

Despite these figures, it's essential to note the change in the CASA ratio, which stood at around 37.7% as of December 31, 2023, compared to 44% in December 2022 and 37.6% in September 2023. This shift underscores the dynamic nature of the bank's deposit composition, signalling adaptability to market conditions.

However, HDFC Bank emphasizes that the figures for the period ended December 31, 2023, include the operations of the erstwhile HDFC, which amalgamated with and into HDFC Bank on July 1, 2023. As a result, these figures are not directly comparable with those of the corresponding period in the previous year.

Shares of HDFC Bank were seen trading with cuts of more than 1% at Rs 1,670 per share as of 1:40 pm on the National Stock Exchange (NSE) on Friday, January 5. Market analysts are closely watching the bank's trajectory, anticipating further insights into its financial strategies and market positioning.