HDFC Bank Reports Strong Growth in Q4 2024; Retail Loan grew by 108.9%

HDFC Bank, India’s largest private sector lender, has reported a business update for the quarter ended March 31, 2024. The bank’s performance was buoyed by the merger with erstwhile housing finance giant HDFC Limited, which was completed on July 1, 2023.

Lending Growth

The bank’s gross advances stood at a staggering Rs 25,080 billion as of March 31, 2024, registering a remarkable 55.4% year-on-year growth from Rs 16,142 billion a year ago. This growth was driven by a surge in domestic retail loans, which grew by an impressive 108.9% compared to March 2023 levels.

The corporate and other wholesale loan book (excluding non-individual loans of the erstwhile HDFC Limited) witnessed a modest 4.1% increase from the previous year. However, it saw a marginal decline of 2.2% from the December 2023 quarter, reflecting the bank’s cautious approach towards corporate lending amid economic uncertainties.

Deposit Momentum

HDFC Bank’s deposit franchise also exhibited strong traction, with total deposits reaching Rs 23,800 billion, up 26.4% from Rs 18,834 billion a year ago. The bank’s retail deposits grew by 27.8%, while wholesale deposits increased by 19.4% compared to March 2023.

The bank’s CASA (Current Account Savings Account) deposits, considered a crucial indicator of low-cost funding, stood at Rs 9,090 billion, growing by 8.7% year-on-year. However, the CASA ratio declined to 38.2% from 44.4% a year ago, mainly due to the impact of the HDFC merger.

Merger Impact

The financial figures for the quarter ended March 31, 2024, include the operations of the erstwhile HDFC Limited, which merged with HDFC Bank on July 1, 2023.

Also Read: HDFC and HDFC Bank Merge

The audited financial results for the quarter and year ended March 31, 2024, are subject to the statutory auditors’ review.

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