HDFC Bank's advances up 15% in Q2 of FY22, cites growth in rural India

Lender says it is recording growth in three business segments as the coronavirus pandemic slows down in India.

HDFC Bank's loans rose by 15.4 per cent (year-on-year basis) to Rs 11.98 trillion as of September 30, 2021. Sequentially, loans grew by 4.4 per cent over Rs 11.47 trillion in June 2021, showing traction in demand after the second wave of Covid-19 cases.

The company has three business segments. Loans in the commercial and rural banking space showed strong traction, with 27.5 per cent growth over September 2020 and 7.5 per cent over June 2020. Retail loans grew by around 13 per cent over September 30, 2020 and around 5.5% over June 30, 2021, according to filing with BSE.

The bank, in the quarter ended September 30, purchased home loans aggregating Rs 71.32 billion through the direct assignment route from Housing Development Finance Corporation (HDFC). Such loans form part of its retail loan book.

The wholesale loans book grew by around six per cent over September 30, 2020. However, it was lower by around half per cent over June 30, 2021.

HDFC Bank said said its deposits grew by 14.4 per cent (Y-o-Y basis) to Rs 14.06 trillion as of September 30, 2021, compared to over Rs 12.29 trillion a year ago. Retail deposits grew by around 17.5 per cent over September 30, 2020 and around four per cent over June 30, 2021.

Low-cost deposits called Current Account and Savings Account (CASA) expanded by 28.6 per cent to approximately Rs 6.58 trillion in September 30, 2021 over Rs 5.11 trillion a year ago. Its growth sequentially was around 7.6 per cent over Rs 6. 11 trillion as of June 30, 2021. The share of CASA money in total deposits improved to 47 per cent at end of September 2021 from 41.6 per cent in September 2020 and 45.5 per cent over June 2021.

Advances by the banking system have grown by 6.7 per cent on (Y-o-Y basis) till early September 2021, according to Reserve Bank of India data.