HDFC Bank has posted a slower loan book growth than the system-level growth of 9-10% but the deposit growth is far stronger in the first quarter of the current fiscal on a year-on-year basis.

The country's largest private lender in its business update said credit has grown 6.7% to Rs 26.53 lakh crore in the June quarter, from Rs 24.86 lakh crore in the year-ago period.

The bank’s deposits grew higher at 16.2% year-on-year to Rs 27.64 lakh crore at the end of Q1FY26, outpacing credit growth for the third successive quarter. This shows the correction is on course as after the merger of parent HDFC  Ltd with HDFC Bank in July 2023, the lender's advances grew at 54% compared to deposit growth of 26% for the fiscal year ended March 2024.   

According to the latest RBI data, credit growth in the system stood at 9.6% YoY for the fortnight ended 13 June.

HDFC Bank’s average CASA deposits were Rs 8.60 lakh crore at the end of June 2025, up 6.1% over Rs 8.10 lakh crore a year ago.

Total CASA deposits were Rs 9.37 lakh crore as of 30 June 2025, up 8.5% from the year-ago period, but lower by around 0.8% from Rs 9.44 lakh crore as of 31 March 2025.

Total term deposits at the end of June quarter rose 20.6% YoY to Rs 18.27 lakh crore.

The bank is expected to have a better fix on its margins and has cut deposit rates in the first quarter of the fiscal. 

The loan-to-deposit ratio is also expected to improve further in the fiscal, after having fallen to 95.1% in the first quarter from 96.5% in Q4FY25. 

During the quarter ended 30 June 2025, the Bank securitised/assigned loans of Rs 3,300 crore as a strategic initiative, the lender said in a regulatory filing.