HDFC Bank mops up ₹49K crore in Q1 FY26 deposits, outpaces peers

Loan growth of country's largest private sector lender lagged that of industry

HDFC Bank, India’s largest private sector lender, has reported 16.2 per cent year-on-year (Y-o-Y) growth in deposits to ₹27.64 trillion in the first quarter of 2025-26 (Q1FY26), outpacing the deposit growth of the industry by 500-600 basis points (bps). On a sequential basis, the bank’s deposit base grew 1.8 per cent.

 

According to the latest Reserve Bank of India (RBI) data, credit growth in the system inched up to 9.6 per cent Y-o-Y in the fortnight ended June 13. During the same period, deposit growth stood at 10.4 per cent Y-o-Y, continuing to outpace credit growth.

 

In Q1FY26, the bank mopped up ₹49,300 crore of deposits. In FY25, the bank had mopped up ₹3.35 trillion in deposits, with ₹1.5 trillion in Q4FY25; ₹63,500 crore in Q3FY25; and ₹1.2 trillion in Q2FY25.

 

In Q1, the bank’s period-end current account savings account (CASA) deposits stood at approximately ₹9.37 trillion, up 8.5 per cent Y-o-Y, but down 0.8 per cent sequentially. Meanwhile, period-end term deposits stood at ₹18.27 trillion, up 20.6 per cent Y-o-Y, and 3.2 per cent sequentially.

 

A period-end CASA deposit refers to the total amount of money held in a bank's current accounts and savings accounts at the end of a specific reporting period while period-end term deposit, also known as time deposit, is a type of investment where you deposit a fixed sum of money for a predetermined period, and the interest is paid out at the end of that period. 

 

Although HDFC Bank’s deposit growth outpaced industry growth, loan growth of the bank came in below the industry growth. In Q1FY26, HDFC Bank’s gross advances (period-end) grew at 6.7 per cent Y-o-Y, and 0.4 per cent quarter-on-quarter (Q-o-Q) to ₹26.53 trillion.

 

“Loan growth at around 7 per cent Y-o-Y remains weak, and lags behind the system loan growth of 9-10 per cent,” said Macquarie Research in a report.

 

With deposits growing faster than credit, the credit-deposit (CD) ratio of the bank has moderated to 95.1 per cent as of June 30, compared to 96.5 per cent on March 30. “We believe the bank is on track to achieve an LDR (loan-to-deposit) ratio of ₹92 per cent by the end of the year, assuming 10 per cent loan growth and 15 per cent deposit growth,” the report added.

 

The bank has previously guided that in FY26, it will grow its loan book in tandem with the industry growth, and in FY27 it will look to grow the loan book faster than industry growth. In FY25, the bank had grown its loan book slower than the industry growth to bring down its elevated CD ratio.

 

The bank’s CD ratio had jumped from 86-87 per cent earlier to 110 per cent following the amalgamation of erstwhile parent HDFC Ltd effective July 2023. 

 

Q1 update of banks

 

IDBI Bank on Friday reported 9 per cent Y-o-Y growth in net advances at ₹2.12 trillion in Q1FY26, while its deposits, during this period, went up by 7 per cent Y-o-Y to ₹2.97 trillion.

 

State-owned Bank of India’s (BoI’s) domestic advances jumped 11.2 per cent Y-o-Y to ₹5.65 trillion in Q1FY26 while its deposits were up 9.6 per cent Y-o-Y to ₹7.10 trillion.

 

Pune-based Bank of Maharashtra reported 15.36 per cent Y-o-Y growth in advances at ₹2.41 trillion in Q1FY26. During this period, deposits were up 14.08 per cent Y-o-Y to ₹3.05 trillion.

 

Private sector lender RBL Bank’s advances in Q1FY26 was up 9 per cent Y-o-Y to ₹96,704 crore while deposits during this period was up 11 per cent Y-o-Y to ₹1.12 trillion.

 

Kolkata-based Bandhan Bank’s advances in Q1FY26 was up 6.4 per cent Y-o-Y to ₹1.33 trillion, and its deposits were up 16.1 per cent Y-o-Y to ₹1.55 trillion.