HDFC Bank-HDFC's combined loan book up 13.1%; deposits up 16.2% in Q1

Sequentially, merged entity's advances rose by 0.7% to Rs 22.30 trillion as of March 31

HDFC Bank and HDFC Ltd’s combined loan book expanded by 13.1 per cent year-on-year (YoY) to Rs 22.45 trillion at the end of June 30, 2023 (Q1Fy24). The merged entity’s deposits grew by 16.2 per cent YoY at Rs 20.63 trillion at the end of the first quarter.

Sequentially, the merged entity’s advances rose by about 0.7 per cent to Rs 22.30 trillion as of March 31, 2023. However, the pace of deposit mobilisation was higher at 1.2 per cent over Rs 20.39 trillion as of March 31, 2023.

The merged entity's average Liquidity Coverage Ratio (LCR) was around 120 per cent for the quarter ended June 30, 2023.

The country’s largest private sector lender gave out details about the performance for the merged entity on a proforma basis. Mortgage major Housing Development Finance Corporation (HDFC) amalgamated with and into HDFC Bank on July 1, 2023.

HDFC Bank informed stock exchange BSE that the housing finance firm closed its books of accounts a few days prior to the quarter ended June 30, 2023 to facilitate the merging of its financials with those of the bank. 

Accordingly, some of the numbers may not be directly comparable with those of the previous year. HDFC Bank stock closed 3.2 per cent lower at Rs 1,673.3 per share on BSE.

On a standalone basis, HDFC Bank’s advances rose by 15.8 per cent YoY to approximately Rs 16.15 trillion as of June 30, 2023. Its deposits were up by 19.2 per cent to Rs 19.13 trillion as of June 30, 2023.

The bank purchased loans aggregating Rs 116.32 billion through the direct assignment route from HDFC in the first quarter (Q1Fy24) under the home loan arrangement

Retail deposits increased by 21.5 per cent YoY and 2.5 per cent over March 2023 on a standalone basis. The wholesale deposit portfolio grew by around 9.0 per cent YoY and 2.5 per cent over March 2023.

The share of low-cost deposits – current account and savings account (CASA) – declined to around 42.5 per cent as of June 30, 2023, from 45.8 per cent a year ago. Share of CASA in total deposits also declined from 44.4 per cent as of March 2023.