HDFC Bank on Friday announced that sequential growth in deposits has outpaced loan growth. (Photo: Shutterstock)
2 min read Last updated: October 4, 2024 | 10:03 AM IST
HDFC Bank, India’s largest private lender, said on Friday that sequential deposit growth outpaced loan growth in the second quarter.
The Mumbai-based bank’s gross advances, or loans sanctioned and disbursed, rose 1.3% to 25.19 trillion rupees ($300 billion) in the quarter ended September, following a 0.8% decline in the previous quarter. ).
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Personal loans increased by about Rs 33,800 crore, while commercial and rural bank loans increased by about Rs 38,000 crore quarter-on-quarter, HDFC Bank said in a statement.
Corporate and other wholesale loans declined by Rs 13,300 crore quarter-on-quarter, it said.
Although there was no continuous fluctuation from April to June, deposits increased by 5.1% from the previous quarter to Rs 25 trillion.
Total low-cost checking and savings accounts increased 2.3%.
HDFC Bank merged with parent company HDFC in July 2023, and the deal added a large amount of loans to its portfolio, but resulted in much lower deposits.
As a result, the bank’s deposit-to-deposit ratio (LDR) will rise to about 110% after the merger, putting it under pressure to raise the pace of deposit-raising or slow lending growth.
LDR is a metric used by banks to assess their liquidity position by assessing whether they have enough deposits to fund loan expansion.
HDFC Bank had said in July that it aims to reduce LDR in the coming quarters as deposits grow faster than loans.
The bank said it securitized loans worth Rs 19,200 crore in the September quarter as a strategic initiative. The bank has securitized loans worth Rs 24,600 crore this year.
(Only the headline and photo in this report may have been reworked by Business Standard staff. The rest of the content is auto-generated from a syndicated feed.)
First publication date: October 4, 2024 | 10:03 AM IST
