HDFC Bank reports deposit growth of 4.2% outpacing loans in Q3FY25

India's biggest private sector bank, HDFC Bank, reported that deposit growth outpaced loan growth on a quarter-on-quarter basis for the period ended December 31.

The deposits were at ₹24.53 trillion, marking an increase of 4.2 per cent, slowing from a 5.1 per cent rise from the July-September quarter, HDFC Bank said in an exchange filing on Saturday.

The average current and savings account (CASA) deposits rose 1.1 per cent in the quarter ended December 31, it said. Gross advances, or loans sanctioned and disbursed, grew 0.9 per cent to ₹25.43 trillion, slowing from 1.3 per cent in the previous quarter, it added.

HDFC Bank is the largest private bank in India. In July 2023, it merged with its parent HDFC, which added a large amount of loans and a low volume of deposits to its portfolio. The bank's loan-to-deposit ratio surged nearly 110 per cent after the merger, adding pressure to increase deposit growth and reduce loans, according to Reuters.

In the last few months, the bank has offered retail loans for sale to reduce the loan-to-deposit ratio, which assesses liquidity position. HDFC Bank securitised ₹216 billion during the December quarter “as a strategic initiative,” it said.

In the December quarter, HDFC Bank securitised 216 billion rupees of loans “as a strategic initiative,” it said.

On Friday, the Mumbai-based bank informed the stock exchanges that the Reserve Bank of India (RI) has allowed it to acquire a 9.5 per cent stake in Kotak Mahindra Bank, AU Small Finance Bank and Capital Small Finance Bank within a year from the approval date.

“We further wish to inform you that the said approval is valid for a period of one year from the date of RBI’s letter, i.e., till January 2, 2026. Further, HDFC Bank needs to ensure that the “aggregate holding” by its group entities in the above-mentioned banks does not exceed 9.50% of the paid-up share capital or voting rights of the respective banks at all times,” HDFC Bank said.