HDFC Bank Q3: Deposits Surge 4.2%, Loan Growth Trails at 0.9%

HDFC Bank Reports Faster Deposit Growth Than Loans in Q3

HDFC Bank, India’s largest private-sector lender, reported robust growth in its deposits for the quarter ending December 31, 2024. Deposits surged by 4.2% to reach ₹24.53 lakh crore, reflecting strong customer confidence and the bank’s ability to attract funds. In contrast, the bank’s loan book grew at a slower pace of 0.9%, totaling ₹25.43 lakh crore for the same period.

The bank’s loan-to-deposit ratio remains elevated at approximately 110%, a direct result of its merger with Housing Development Finance Corporation (HDFC) in July 2023. Despite this high ratio, the bank demonstrated strategic financial management by securitizing loans worth ₹21,600 crore during the quarter. This step not only enhances liquidity but also strengthens its balance sheet amid a challenging macroeconomic environment.

The slower loan growth indicates cautious credit disbursement in light of prevailing market uncertainties, while the rapid deposit growth underscores the bank’s commitment to building a stable funding base. HDFC Bank continues to balance its objectives of supporting credit demand with maintaining a strong financial position.

This performance comes as the bank navigates the post-merger integration with HDFC, a milestone that has positioned it as one of the largest financial institutions in the country. Analysts view the securitization move as a prudent measure to ensure liquidity and improve the bank’s financial resilience.