HDFC Bank gross advances jump 52.6% on-year in Q1 to Rs 24.8 lakh crore
The country’s largest private bank said that the figures for the period ended June 30, 2024 and March 31, 2024 included the operations of the former HDFC Limited and hence were not comparable with those of the corresponding period of the previous year.
In the first quarter of the current fiscal year, HDFC Bank’s retail loans grew by around Rs 18,600 crore, commercial and rural banking loans grew by Rs 7200 crore while corporate and other wholesale loans declined by Rs 26,600 crore, the lender said.
On the liability side, if the impact of the merger were to be excluded, HDFC Bank’s deposits grew by 16.5% over June 30, 2023. On a sequential basis, deposit growth was flat, with the bank’s deposits at Rs 23.79 lakh crore as on March 31, 2024.
Over the past few months, the Reserve Bank of India has repeatedly flagged the persistence of higher bank credit growth than deposit growth, with the central bank telling banks to re-strategize businesses and ensure a prudent balance between assets and liabilities.
As on June 30, HDFC Bank’s current account savings account (CASA) deposits were at Rs 8.63 lakh crore, registering growth of 6.2% over the figures a year ago. CASA deposits, however, fell from Rs 9.09 lakh crore as on March 31, 2024 “which had a seasonal impact”, the bank said.CASA deposits represent low-cost funds for banks.HDFC Bank’s current account balances fell by Rs 42,500 crore during the April-June quarter. Time deposits showed strong growth, clocking in at Rs 15.16 lakh crore as on June 30, 2024, 37.7% higher than a year ago. At March end, the time deposits were at Rs 14.71 lakh crore.
HDFC Bank’s Liquidity Coverage Ratio – a key metric that investors have been monitoring – was around 123% for the quarter, the lender said. In the quarter ended March 31, 2024, HDFC Bank’s LCR was at 115.17% while the figure was at 109.80% at the end of the December quarter, documents published by the lender showed. In the quarter ended September 30, 2023, the bank’s LCR was at 120.50%.
In January, following the release of its Oct-Dec earnings, HDFC Bank’s share price had dropped sharply, with the decline in the LCR being one of the factors behind the fall in stock price, analysts had said.
LCR refers to a stock of high-quality liquid assets – primarily government securities – that banks have to maintain in order to tide over a hypothetical 30-day stress scenario. Banks have to maintain 100% LCR, according to RBI norms. END