HDFC Bank Gross Advances Grow 52%, Deposits Jump 24.4%

HDFC Bank reported a 52.6% year-on-year growth in its gross advances. As of June 30, 2024, the bank’s gross advances amounted to approximately ₹24.87 lakh crore, a substantial increase from ₹16.30 lakh crore as of June 30, 2023.

What Happened: HDFC Bank’s advances under management (grossing up for inter-bank participation certificates, bills
rediscounted and securitisation/assignment) were ₹25.75 lakh crore as of June 30, 2024, compared to ₹ 17.05 lakh crore as of June 30, 2023. The bank’s deposits also saw a growth of around 24.4% over the previous year, amounting to ₹23.79 lakh crore as of June 30, 2024.

Excluding the impact of the merger of erstwhile HDFC Limited with the bank on July 1, 2023, the bank’s gross advances grew by 14.9% over June 30, 2023. Similarly, excluding the merger impact, the bank’s deposits grew by 16.5% over June 30, 2023.

Key Figures (₹ lakh crore)June 30, 2023March 31, 2024June 30, 2024QoQYoY
Gross advances16.3025.0824.87(0.8%)52.6%
Advances under management
Period end17.0525.7625.75(0.0%)51.0%
CASA deposits8.139.098.64(5.0%)6.2%
Time deposits11.0014.7115.163.0%37.7%
Average deposits
Average deposits18.2421.8422.834.6%25.2%
CASA deposits7.507.848.113.3%8.1%
Time deposits10.7513.9914.735.2%37.0%

During the quarter, retail loans grew by approximately ₹18,600 crores, and commercial and rural banking loans rose by around ₹7,200 crores, while corporate and other wholesale loans declined by ₹26,600 crore compared to March 31, 2024.

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Total deposits reached ₹23.79 lakh crore as of June 30, 2024, a 24.4% increase from ₹19.13 lakh crore a year earlier, and remained similar to ₹23.79 lakh crore as of March 31, 2024. Excluding the merger impact from July 2023, deposits grew by 16.5% year-over-year.

CASA (current and savings account) deposits were ₹8.6 lakh crore, up 6.2% from ₹8.13 lakh crore in the previous year, though down from ₹9.08 lakh crore in March 2024 due to seasonal factors, with current account balances reducing by ₹42,500 crore.

Earlier in the week, HDFC Bank’s shares hit an all-time high, buoyed by the anticipation of increased inflows from MSCI Rejig. The bank’s shareholding data for the June quarter showed a decline in foreign institutional investors’ (FII) shareholding, which paved the way for increased weightage for the stock in the MSCI index and increased inflows to the scrip.

Goldman Sachs also maintained its bullish stance on HDFC Bank, keeping it on its APAC high-conviction list. The brokerage firm sees the bank's synergies driving substantial market share gains for India’s largest lender.

Price Action: HDFC Bank’s share price was down 2.35% to close at ₹1,727.15 on Thursday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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