HDFC Bank's gross advances surge 55.4% to Rs 25.08 trn in Q4 FY24

The bank's domestic retail loans grew by around 108.9% over the year-ago period and rose by 3.7% over Q3 FY24 figures

HDFC Bank, the largest private-sector lender in the country, has reported an increase in deposits of Rs 1.66 trillion in the January-March period, translating into a growth rate of 7.5 per cent over the previous quarter.

This addressed investors’ concern over a high credit-deposit ratio.

The stock ended 3.06 per cent higher at Rs 1,527.90 as compared to the Sensex gain of 0.47 per cent.

On a year-on-year basis, deposits grew by 26.4 per cent to Rs 23.8 trillion.

The bank’s stock came under pressure in the third quarter after deposits grew only Rs 41,000 crore, which resulted in the credit-deposit ratio increasing to 110 per cent.

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On loans, the bank posted a 55.4 per cent year-on-year increase in gross advances to Rs 25.08 trillion at the end of the last quarter of FY24, up from Rs 16.14 trillion in the year-ago period.

Sequentially, the bank’s advances inched up 1.6 per cent from Rs 24.69 trillion at the end of December 31, 2023 (Q3 FY24).

HDFC was merged with HDFC Bank on July 1, 2023, and the figures for Q4FY24 are not comparable to those for Q4 FY23.

Loan growth during the quarter was driven by retail advances, which went up 3.7 per cent sequentially and commercial and rural banking increased 4.2 per cent over Q3.

“Corporate & other wholesale loans (excluding non-individual loans of the erstwhile HDFC Limited) grew by around 4.1 per cent over March 31, 2023 and were lower by around 2.2 per cent (Rs 98 billion) over December 31, 2023,” the bank said.

Private lender Bandhan Bank’s loans and advances reported a growth rate of 17.8 per cent year-on-year to more than Rs 1.28 trillion from Rs 1.09 trillion a year ago.

Bandhan Bank’s deposits recorded a growth rate of 25.1 per cent to Rs 1.35 trillion during the period.

The growth in advances and deposits of small finance banks (SFBs) also remained robust.

In the last quarter of FY24, AU SFB’s advances grew 25 per cent year-on-year to Rs 73,999 crore from Rs 67,624 crore. Ujjivan SFB recorded a growth rate of 24 per cent to Rs 29,779 crore.

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Equitas SFB’s advances rose by 23 per cent to Rs 34,337 crore and ESAF SFB’s advances increased 33.72 per cent to Rs 18,878 crore over the last quarter of FY23.

The SFBs also recorded healthy double-digit growth in deposits.

Equitas SFB saw a 43 per cent surge in deposits over last year to Rs 36,129 crore. AU SFB’s deposits stood at Rs 87,182 crore, 26 per cent higher than in Q4FY23.

Also, Poonawalla Fincorp’s recorded 54 per cent growth in assets under management (AUMs) to nearly Rs 24,800 crore in Q4FY24, supported by robust disbursement.

On a sequential basis, AUMs expanded nearly 13 per cent from Rs 21,850 crore in Q3FY24.

Disbursements during the quarter were up 52 per cent year-on-year at approximately Rs 9,680 crore from Rs 6,371 crore in Q4FY23.

Sequentially, disbursements were up 11 per cent over Rs 8,731 crore in Q3FY24.