HDFC Bank, the country's largest private sector lender, saw its loans drop in the April-June quarter while deposits stayed nearly constant, according to statistics disclosed with the exchanges. The bank's gross advances was at Rs 24.87 trillion as of June 30, down from Rs 25.08 trillion on March 31 - a 0.8 percent decrease quarter on quarter. Advances increased by 14.9% year on year, discounting the effects of HDFC's merger with HDFC Bank, which became effective on July 1, 2023. The deposit book as of June 30 was Rs 23.79 trillion, nearly unchanged from the previous quarter. Deposit growth was 16.5 percent year on year, excluding the merger. The increase of Current and Savings Account Deposits (CASA), which are low-cost deposits and a crucial measure of margins, fell 5% sequentially.
"The bank's CASA deposits were Rs 8,635 billion [Rs 8.6 trillion] as of June 30, 2024, up about 6.2 percent from Rs 8,130 billion [Rs 8.1 trillion] as of June 30, 2023. "This compares to Rs 9,088 billion [Rs 9.08 trillion] as of March 31, 2024, which had a seasonal impact," HDFC Bank reported. Current account balances fell by Rs 42,500 crore during the quarter.
During the quarter, retail loans increased by roughly Rs 18,600 crore, commercial and rural banking loans increased by around Rs 7,200 crore, and corporate and other wholesale loans were lower by Rs 26,600 crore than on March 31, 2024. "Liquidity coverage ratio (average) was around 123 per cent for the quarter," according to the bank.
