HDFC Bank noted a widening gap between credit and deposit growth in the March quarter, with loan expansion surpassing deposit mobilization. The bank’s gross advances increased by approximately 17% year-on-year to nearly Rs 25 lakh crore as of March 31. Retail and SME segments primarily supported the moderate loan growth on a sequential basis, while corporate lending was more controlled.
Total deposits on the liabilities side amounted to around Rs 23.5 lakh crore, showing a growth from the previous year. However, the pace of deposit growth lagged behind credit expansion, resulting in an elevated credit-deposit ratio of about 106–108%. The bank faced challenges in mobilizing cheaper funds, with CASA deposits growing at a slower rate and the CASA ratio declining slightly.
The Board of Directors of HDFC Bank is scheduled to meet on April 18 to approve the audited financial results for the quarter and full financial year ended March 31. Analysts are keen on observing the bank’s progress in accelerating deposit growth, enhancing CASA traction, and maintaining stable margins. Additionally, the bank is focusing on strengthening internal processes, particularly in third-party sales practices, following governance-related developments.
