In an impressive financial update, HDFC Bank, India’s largest private sector bank, showcased substantial growth in its advances and deposits during the third quarter of the fiscal year 2023-24. The bank reported a staggering 62.4% surge in gross advances, which stood at Rs 24.69 lakh crore in the October-December period, marking a significant leap from Rs 15.21 lakh crore in the corresponding quarter of the previous year.
Highlighting the robust performance, HDFC Bank also noted that on a year-on-year basis, the advances were up by a substantial 60.7% and on a sequential basis, witnessed a growth of 4.9% over the quarter ending September 30, 2023. The reported figures were further fortified after accounting for transfers through inter-bank participation certificates and bills rediscounted.
The bank’s internal business classification delineated a notable trajectory in different segments. Domestic retail loans experienced an astonishing 111.0% surge from December 31, 2022, demonstrating the bank’s prowess in retail lending. Additionally, commercial and rural banking loans observed a commendable increase of 31.5% and 6.5% year-on-year and quarter-on-quarter, respectively.
Simultaneously, corporate and other wholesale loans (excluding non-individual loans of the erstwhile HDFC Limited) showcased steady growth figures, rising by approximately 11.0% and 2.0% over December 31, 2022, and September 30, 2023, respectively.
The bank’s deposit base exhibited an equally impressive growth trajectory, aggregating to approximately Rs 22.14 lakh crore as of December 31, 2023, a substantial 27.7% increase from the previous year. Retail deposits experienced a remarkable surge of around Rs 53,000 crore during the quarter, depicting a growth of 28.4% over December 31, 2022. Meanwhile, wholesale deposits showed a notable growth of 24.4% over the same period but experienced a minor decrease of 3.4% over September 30, 2023.
Moreover, HDFC Bank’s current account savings account (CASA) deposits reached approximately Rs 8.35 lakh crore, depicting a 9.5% increase from December 2022. The bank’s CASA ratio stood at around 37.7% as of December 31, 2023, showcasing a marginal decline from the previous year.
It’s worth noting that the reported figures for December 31, 2023, include the amalgamation of the erstwhile HDFC into HDFC Bank on July 1, 2023, and therefore are not directly comparable with the corresponding period of the previous year.
Despite the robust financial update, shares of HDFC Bank opened slightly lower on Friday, January 5, trading at Rs 1686.70 apiece on the Bombay Stock Exchange (BSE). The bank’s performance in this quarter underlines its continuous growth trajectory and strategic positioning in the Indian banking landscape.
