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HDFC Bank Q4 Update: Loans Rise 12%, Deposits 14% as Governance Stays in Focus

The mix signals higher funding costs and keeps attention on April 18 results for clarity on margins, deposits and oversight.

Overview

  • HDFC Bank, which disclosed Saturday’s provisional business update, said advances rose 12% year on year to about Rs 29.6 lakh crore and deposits climbed 14.4% to roughly Rs 31.05 lakh crore.
  • Low‑cost current and savings accounts (CASA) balances grew 12.3% to about Rs 10.6 lakh crore, yet the CASA ratio eased to roughly 37–38%, pointing to greater reliance on higher‑rate term deposits.
  • Brokerages on Monday kept constructive views, with MOFSL, Bernstein and Macquarie flagging stronger‑than‑expected deposit inflows and a sequential drop in the credit‑to‑deposit ratio, even as foreign investors cut stake in the March quarter.
  • Governance remains a watch after part‑time chairman Atanu Chakraborty quit March 18 citing ethical concerns, with reports saying the bank has disciplined staff over past AT‑1 bond mis‑selling and does not plan legal action against him.
  • Peer updates show sector‑wide credit expansion—Axis (18.4%), Kotak (16.2%), IDBI (16%), Bandhan (12.6%), BoM (22%)—while system data point to credit outpacing deposits, which could keep funding costs key to HDFC Bank’s April 18 earnings readout.