In the first quarter after merging with mortgage financier HDFC Ltd, private sector lender HDFC Bank has posted a loan book growth of 10.5% over the year-ago period and deposits have surged 30% but low-cost CASA (current account savings account) has fallen.

The bank disbursed home loans worth Rs 48,000 crore in the July-September period, up 14% sequentially on the erstwhile HDFC’s loan book. Prior to the merger, HDFC Bank did not sell home loans but acted as a distribution agent for parent HDFC.

“Home loan disbursals during the first quarter post-merger were the best ever at Rs 480 billion. This is a growth of 14.0% over the quarter ending June 30, 2023, and a growth of 10.5% over the quarter ending September 30, 2022,” said HDFC Bank in a notification to the exchanges.

The bank’s gross advances jumped 57.7% to Rs 23.5 lakh crore on account of the merger. This reflected a 4.9% rise over the proforma merged advances of Rs 22.4 lakh crore as on 30 June 2023.

The retail loan book rose 111.5% year-on-year and 85% quarter-on-quarter.

Commercial and rural banking loans grew 29.5% year-on-year. Corporate and other wholesale loans grew slower at around 8%.

The non-individual housing loans from HDFC Ltd fell to Rs 1.03 lakh crore compared to Rs 1.09 lakh crore at the end of June. This is in line with the bank’s decision to reduce the non-individual loan book of erstwhile HDFC, by 6.2% sequentially. 

Deposits grew to Rs 21.7 lakh crore, up 29.9% year-on-year and 13.6% quarter-on-quarter. This reflects a growth of around 5.3% over the proforma merged deposits of Rs 20.6 lakh crore as of 30 June 2023.

The CASA ratio stood at 37.6% as on 30 September compared to 45.4% a year ago and 42.5% in the preceding June quarter. The merger was the main cause of this as it took on HDFC’s liabilities, which were fixed deposits.

Meanwhile, HDFC Bank has revamped some parts of top management as it sought to propel its mortgages business. While information technology and digital functions are brought directly under chief executive Sashidhar Jagdishan, the retail loans are split into mortgage and non-mortgage segments.