HDFC has said that its advances rose 19.5% year on year, while deposits grew 19.9%. The second-largest bank’s growth in deposits is more than double the industry rate of 9.4%, while loan growth is marginally higher than the industry rate of 17.4%.
The bank reported in a stock exchange filing that as of December 2022, its loan book has increased to Rs 15 lakh crore from Rs 12.6 lakh crore. There was a 1.8% consecutive loan growth.
The bank’s internal business classification shows domestic retail loans grew by around 21.5% over December 31, 2021. The bank’s commercial & rural banking loans grew even faster by around 30% over December 31, 2021 while corporate & other wholesale loans grew by around 20%.
At the end of the quarter, the bank had deposits worth Rs 17,335 crore, compared to Rs 14,459 crore a year earlier. Retail deposits increased by around Rs 67,000 crore during the quarter, and grew by about 21.5% over December 31, 2021. Wholesale deposits grew by around 11.5% over December 31, 2021 and were lower by around 2.5% over September 30, 2022.
“HDFC Bank’s deposit growth at 20% YoY for Q3FY23 was in line with loan growth of 20%. In stark contrast to what the banking system as a whole is reporting, there is a significant difference between deposit growth, which is at about 9%, and loan growth, which is at 17% YoY, according to Suresh Ganapathy, associate director at Macquarie. “As per our calculations and estimates, HDFC Bank’s incremental deposit market share 9MFYTD could be closer to around 25% in deposits in our view compared to an outstanding market share of 10% which is quite commendable,” said Ganapathy.