HDFC Bank's loan book shrinks in June quarter, deposits flat sequentially

The deposit book as of June 30 was Rs 23.79 trillion, almost flat compared to the previous quarter. Deposit growth was 16.5 per cent year-on-year, excluding the impact of the merger

HDFC Bank, the country’s largest private sector lender, saw its loan book shrinking during the June quarter while deposits were almost flat, according to the data shared by the lender with the exchanges.
 

The bank’s gross advances stood at Rs 24.87 trillion as on June 30, compared to Rs 25.08 trillion on March 31 — down 0.8 per cent sequentially. Advances grew 14.9 per cent year-on-year (Y-o-Y), excluding the impact of the merger of erstwhile housing financier HDFC with HDFC Bank, which came into effect on July 1, 2023.
 

The deposit book as of June 30 was Rs 23.79 trillion, almost flat compared to the quarter ago period. Deposits grew 16.5 per cent Y-o-Y, excluding the impact of the merger.
 

 

The current and savings account deposits (Casa) — the low cost deposits that are an important indicator of margins — came down 5 per cent sequentially, to Rs 8.64 trillion from Rs 9.08 trillion.
 

The bank’s Casa deposits were Rs 8.6 trillion as of June 30, 2024, up 6.2 per cent compared to the same quarter last year, the bank said. This tally compared to Rs 9.08 trillion as of March 31, 2024, which had seen a seasonal impact.
 

Current account balances reduced by Rs 42,500 crore during the quarter.
 

During the quarter, retail loans grew by around Rs 18,600 crore, commercial & rural banking loans grew by around Rs 7,200 crore, and corporate & other wholesale loans fell by Rs 26,600 crore compared to March 31, 2024. “Liquidity coverage ratio (average) was around 123 per cent for the quarter,” the bank added.
 

Another private sector lender RBL Bank also saw deposits contracting during the quarter. The bank’s deposits fell to Rs 1.01 trillion in June-end from Rs 1.03 trillion in the March quarter. On an Y-o-Y basis, the deposit growth was 18 per cent. Casa deposits also fell to Rs 32,996 crore from Rs 36,448 crore. The proportion of Casa deposits to total deposits were 32.6 per cent in June-end, down from 35.2 per cent in March-end.
 

The bank reported loan growth of 3 per cent on sequential basis to Rs 88,455 crore. Advances also grew by 18 per cent Y-o-Y.