HDFC Bank's LDR falls below 100% for the first time after merger

HDFC Bank's LDR was around 87 per cent pre-merger. Following the merger, its LDR went up to 110 per cent

HDFC Bank’s loan-to-deposit ratio (LDR) fell below 100 per cent for the first time since its merger with the erstwhile HDFC Ltd, due to slower loan growth and the securitisation of a sizeable portion of loans in the 2024-25 (FY25) October-December (Q3) quarter.

 

At the end of the December quarter, HDFC Bank’s LDR stood at 99.2 per cent, down from 100.76 per cent in the second quarter (Q2) of FY25 and 111.53 per cent in Q3 of 2023-24.

 

The easing of the LDR aligns with the bank’s guidance, which indicated that it would grow its loan book more