(Reuters) – India’s largest private lender HDFC Bank said on Friday 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. It became.
HDFC Bank said in a statement that personal loans increased by about Rs 338 billion and commercial and rural bank loans increased by about Rs 380 billion quarter-on-quarter.
Corporate and other wholesale lending declined by Rs 133 billion quarter-on-quarter, it said.
Although there was no sequential change in the April-June period, deposits rose 5.1% from the previous quarter to 25 trillion rupees.
Combined 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, post-merger banks’ deposit-to-deposit ratios (LDRs) have risen to around 110%, putting them under pressure to either increase 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 192 billion in a strategic initiative in the September quarter. The bank has securitized loans worth Rs 246 billion this year.
(1 dollar = 83.7930 Indian rupees)
(1 dollar = 83.9580 Indian rupees)
(Reporting by Siddhi Nayak in Mumbai and Varun Hebaral in Bengaluru; Editing by Varun HK and Mrigank Dhaniwala)
