HDFC Bank has seen a 23.5% growth in its loan book for the quarter ended September 2022, indicating that demand for credit in India could gather steam in the second half of the current financial year.

The country’s largest private lender took its total advances to Rs 14.80 lakh crore in the second quarter of this fiscal, up from Rs 11.98 lakh crore a year ago.

Gross of transfers through inter-bank participation certificates and bills rediscounted, the bank's advances grew by around 25.8% over 30 September 2021, HDFC Bank said in a regulatory filing.

The bank's deposits surged nearly 19% to approximately Rs 16.73 lakh crore as of 30 September 2022, from Rs 14.06 crore a year ago.

CASA (current account savings account) deposits aggregated to Rs 7,595 billion, up 15% year-on-year. CASA ratio stood at around 45% compared to 46.8% as of 30 September 2021.

During the quarter ended September, the bank purchased loans aggregating Rs 9,145 crore through the direct assignment route under the home loan arrangement with parent firm Housing Development Finance Corporation Limited.

In April, HDFC Bank agreed to take over parent HDFC Ltd in a deal valued at about $40 billion.

Under the merger scheme, HDFC shareholders will receive 42 shares of HDFC Bank having a face value of Re 1 each for 25 shares of HDFC having a face value of Rs 2 each.

The proposed entity will have a combined asset base of around Rs 18 lakh crore.