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India biggest private sector bank, the HDFC Bank reported that deposit growth has outpaced loan growth on a quarter on quarter basis for the period ended on Decemeber 31. The deposits were at ₹ 24.53 trillion, an increase of 4.
2% slowing from 5.1% rise from the quarter ended on September 30, HDFC Bank said in an exchange filing on Saturday. The average current and savings account ( CASA ) deposits rose 1.
1% in the quarter ended on December 31, it said. Gross advances, or loans sanctioned and disbursed, grew 0.9% to 25.
43 trillion rupees, slowing from 1.3% 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% after the merger, adding pressure to increase deposit growth and reduce loans, according to Reuters . The bank has offered retail loans for sale in the last few months to reduce the loan-to-deposit ratio that assesses liquidity position.
HDFC Bank has 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, HDFC Bank informed the stock exchanges that the Reserve Bank of India (RI) has allowed it to acquire a 9.
5% 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.
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