HDFC Bank’s total advances record 17% growth to ₹16,005 bn in Q4FY23, domestic retail loans up 21%

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For the final quarter of FY23, the largest private lender, HDFC Bank, had a roughly 17% increase in gross advances year over year. On Monday, the bank disclosed the results of its balance sheets for the relevant quarter. The bank reported double-digit growth in all areas of lending. Deposits of aggregate increased dramatically, by almost 21%.

The amount of advances received by HDFC Bank in the three months ended March 31, 2023, was over $16,005 billion, an increase of 16.9% from the $13,688 billion received in the same period last year. From advances of 15,068 billion in the third quarter of December 2022, the growth was 6.2%.

Nevertheless, when the gross of transfers made through interbank participation certificates and rediscounted bills is taken into account, the growth in advances at HDFC Bank is then between 6.5% and 21.3% over March 31, 2022.

Domestic retail loans from HDFC Bank increased by 21% YoY and 5% QoQ according to loan books. Also, its loans for commercial and rural banking increased by 30% YoY and 9.5% QoQ. Corporate and other wholesale loans rose by 4.5% quarterly and 12.5% year over year.

The bank also experienced strong rise in deposit growth.

Its deposits increased by 20.8% to reach 18,835 billion in Q4 FY23 from 15,592 billion in Q4 FY22. Moreover, compared to deposits of 17,332 billion in the previous quarter, it reported an increase of 8.7%.

Retail deposits climbed by over $1,067 billion during the quarter, by about 23.5% over March 31, 2022, and by about 7.5% over December 31, 2022.

The bank’s wholesale deposits increased by 10% YoY and 15.5% QoQ.

Moreover, as of March 31, 2023, the bank’s CASA deposits were $8,360 billion, an increase of almost 11.3% over $7,510 billion from March 31, 2022, and an increase of roughly 9.6% over $7,630 billion from December 31, 2022.

Retail CASA increased by about 12.5% YoY and 7.5% QoQ during the quarter.

However, the CASA ratio decreased from 48.2% in Q3FY22 to 44% in Q4FY23. but remained constant from the 44% observed in Q4 of FY23.

Furthermore, as part of the home loan agreement with Housing Development Finance Corporation, HDFC Bank purchased loans totaling 93.40 billion rupees in Q4 of FY23 through the direct assignment channel (HDFC).

It should be noted that this is simply tentative statistics for the fourth quarter and is not HDFC Bank’s primary result. On April 15, the bank will release its primary financial results for Q4FY23.

Shares of HDFC Bank on the BSE closed at 1610.35 each, essentially unchanged from the previous print. In terms of market share, HDFC Bank is the largest banking institution in India and the third-largest firm overall.

The market capitalization of HDFC Bank as of April 3, 2023, exceeds $8.98 lakh crore.