According to a recent report by Macquarie Research, HDFC Bank’s LDR has declined from a peak of around 110 per cent to 103.5 per cent. (Photo: Shutterstock)
3 min read Last updated: October 4, 2024 | 8:45 PM IST
HDFC Bank, the country’s largest private financial institution, mobilized over Rs 1.2 trillion in deposits in the quarter ending September 2024 (Q2 FY25), according to the bank’s Friday exchange filing. did.
According to the bank’s quarterly update, deposit growth in the second quarter of the fiscal year (2QFY25) outpaced credit growth on a quarter-over-quarter basis. Compared to the first quarter, deposits increased by 5.1% and gross advances increased by 1.3%.
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The bank’s deposit base in Q2 FY25 was Rs 25 trillion, growing by 15.1% on a year-on-year (y-o-y) basis. Additionally, total advances stood at Rs 25.19 trillion, an increase of 7% year-on-year.
“HDFC Bank, in its pre-Q2 FY25 update, reported deposit growth of 5% QoQ (QoQ), which exceeded our expectations; 80,000 billion against a net increase of Rs 1.2 trillion, driven by strong 6.7% quarter-on-quarter growth in term deposits,” Macquarie Research said in a report.
“Assuming an expected deposit growth of Rs 1.2 trillion in the third quarter, followed by Rs 1.6 trillion in the fourth quarter, this would imply a 17 per cent year-on-year deposit growth, which reflects our “This compares favorably with the expected system deposit growth of 11 per cent, compared to current system deposit growth of 11.5 per cent, compared to year-over-year deposit growth of approximately 15 per cent.” .
HDFC Bank had earlier said that advance payments are increasing faster than deposits, with the aim of bringing down the soaring deposit-to-deposit ratio (LDR) to the level before housing lender HDFC merged with the bank on July 1, 2023. The forecast was that it would be slow.
In Q2 FY25, the bank securitized Rs 19,200 crore of loans (securitization is the sale of assets to generate liquidity) in a strategic effort to bring down high LDRs. According to a recent Macquarie Research report, HDFC Bank’s LDR has declined from 110 per cent to 103.5 per cent.
HDFC Bank’s current account balances stood at Rs 8.83 trillion in Q2 FY25, an increase of around 8% year-on-year. Such deposits increased by 2.3% compared to the first quarter of 2025. The company’s fixed deposits reached Rs 16.16 trillion in Q2 FY25, up 19.3% YoY and 6.7% QoQ, reflecting customer preference for fixed deposits at this stage of the interest rate cycle. are.
According to the bank, operational advances in the second quarter of FY2025 amounted to 26.33 trillion rupees, an increase of 8% year-on-year and 2.3% quarter-on-quarter. Personal loans increased by around Rs 33,800 crore during the quarter. Commercial and rural bank loans increased by about Rs 38,000 crore. Also, corporate loans and other wholesale loans declined by Rs 13,300 crore compared to Q1FY25.
“Lending growth was only 7% year-on-year, lower than our forecast of 8% year-over-year, driven by a decline in corporate lending. “The company has emphasized that it is looking to sell some of its loans, which we believe has contributed to the slowdown in corporate growth,” Macquarie Research said.
First publication date: October 4, 2024 | 11:58 AM IST
