Private sector lender HDFC Bank has posted a loan growth of 15.8% to Rs 16.15 trillion for the fiscal first quarter ended June 2023, compared to Rs 13.95 trillion a year ago.

This was mainly driven by the private lender’s retail book, which increased by 20% year-on-year. 

On quarter-on-quarter basis, the loan book grew a modest 0.9% due to sluggish growth in corporate loans. While corporate and wholesale loan book stayed flat, retail and commercial and rural banking segment saw 4% and 2% sequential growth, respectively.

Deposits outpaced the lender’s loan growth in the quarter ended June 2023, climbing 19.2% to Rs 19.13 trillion from Rs 16.05 trillion a year ago. The quarter-on-quarter growth was 1.6% up with deposits standing at Rs 18.83 trillion as of 31 March 2023.

The retail deposits increased by around Rs 38,000 crore during the fiscal first quarter and grew by around 21.5% year-on-year and around 2.5% quarter-on-quarter. The wholesale deposits grew by around 9% year-on-year and were lower by around 2.5% quarter-on-quarter.

The bank’s CASA (current account savings account) deposits rose 10.7% year-on-year to approximately Rs 8,13,000 crore as of 30 June 2023, while they declined by 2.7% quarter-on-quarter. The retail CASA grew by 11% in Q1FY24 over Q1FY23 but fell by 2% quarter-on-quarter. 

The CASA ratio stood at around 42.5% in the June quarter compared to 45.8% in Q1FY23 and 44.4% in Q4FY23.

During the quarter ended June, the bank purchased loans aggregating Rs 11,632 crore through the direct assignment route under the home loan arrangement with parent Housing Development Finance Corporation (HDFC) Ltd, it said.

On July 1, HDFC Ltd merged with HDFC Bank. 

Merged entity Q1

The combined entity’s gross advances aggregated to approximately Rs 22.45 trillion as of 30 June 2023, representing a growth of 13.1% over Rs 19.85 trillion a year ago. However, sequential growth was just 0.7%.

The merged entity’s gross advances, excluding wholesale advances of HDFC, aggregated to approximately Rs 21,36,500 crore in Q1FY24, up 15.3% year-on-year and 1.3% quarter-on-quarter.

On the deposit side, the merged entity saw a rise of 16.2% to Rs 20.64 trillion as of 30 June 2023, from Rs 17.76 trillion a year ago. On a quarter-on-quarter basis, the growth was 1.2%.