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HDFC Bank, following its merger with mortgage financier HDFC Ltd, reported robust home loan disbursals in the July-September period, disbursing home loans worth Rs 48,000 crore. This figure represents a sequential growth of 14% and a 10.5% increase compared to the same period in the previous year on HDFC’s loan book.

This quarter marked HDFC Bank’s first full operational quarter since merging with HDFC Ltd. The bank previously acted as a distribution agent for HDFC, but it did not directly sell home loans.

HDFC Bank told stock exchanges, “Home loan disbursals during the first quarter post-merger were the best ever at Rs 480 billion. This is a growth of 14.0% over the quarter ending June 30, 2023, and a growth of 10.5% over the quarter ending September 30, 2022.”

However, HDFC Bank has opted to reduce the non-individual loan book inherited from HDFC Ltd, resulting in a 6.2% sequential decrease. The non-individual loan book now stands at Rs 1.03 trillion, down from Rs 1.09 trillion at the end of June. This figure was Rs 1.3 trillion on September 30, 2022.

Retail loan growth

The bank also witnessed a significant surge in its retail loan book, which grew by 85% compared to the previous quarter and by 111.5% over the same period the previous year.

The bank’s gross advances increased by Rs 1.1 lakh crore to reach Rs 23.5 lakh crore in the second quarter, reflecting a 4.9% increase compared to the proforma merged advances of Rs 22.4 lakh crore as of June 30, 2023.

Commercial and rural banking loans experienced robust growth, with a nearly 29.5% increase over September 30, 2022, and a 9.5% growth over June 30, 2023. Corporate and other wholesale loans grew by approximately 8.0% over September 30, 2022, and around 6.0% over June 30, 2023.

The bank’s deposits also saw substantial growth, increasing by Rs 1.1 lakh crore to reach Rs 21.7 lakh crore, reflecting a 5.3% growth over the proforma merged deposits of Rs 20.6 lakh crore as of June 30, 2023.

However, the ratio of current and savings account deposits to total deposits declined to 37.5% as of September 30, compared to 45.4% in the year-ago period and 42.5% in June 2023. This decline was primarily attributed to the addition of liabilities from HDFC, which consisted largely of fixed deposits.

  • Published On Oct 7, 2023 at 08:00 AM IST

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