The numbers are in, and they landed late Sunday evening. HDFC Bank’s provisional business update shows gross advances surging 16.3% year-on-year to ₹32.19 lakh crore. On a sequential basis, loan growth stood at 5.2%, a solid indicator of credit demand holding firm amidst macroeconomic headwinds. The stock, down 27% year-to-date, will face its first real test of these metrics when markets open on Monday, October 5.
But the real story is in the funding side. Total deposits reached ₹33.27 lakh crore, an 18.8% jump from the same period last year. This outpaces the 16.3% growth in advances, a departure from the tight liquidity squeeze seen in prior quarters. Term deposits led this charge, rising 22.8% YoY to ₹22.75 lakh crore. CASA, however, lagged, growing just 10.8% YoY to ₹10.52 lakh crore—a sequential increase of only 2.6%.
Liquidity management is also part of the picture. The bank has mobilized $11.5 billion in Foreign Currency NRU (FCNR) deposits under the RBI swap window. Against this, its overseas branches extended $5.7 billion in loan facilities. Additionally, HDFC Bank issued $2.5 billion in USD-denominated senior unsecured bonds, diversifying its funding base beyond domestic retail.
For investors watching the balance sheet, the average advances under management grew 14% YoY to ₹31.87 lakh crore, with period-end figures at ₹33.07 lakh crore (15.3% YoY). This adjusted metric, which strips out inter-bank participation certificates and securitizations, offers a cleaner view of organic growth. The sequential deposit growth of 4.9% remains below the 5.2% loan growth, suggesting the deposit advantage is a year-on-year phenomenon rather than a current-month surge.
The market reaction will likely be tempered by the leadership transition. Anup Bagchi is set to take over as MD & CEO after Sashidhar Jagdishan’s term ends on October 26. US-listed ADRs initially jumped 2.7% on the announcement but reversed gains by Friday. With the stock trading well off its highs, traders will be looking for a margin expansion story or a clear NIM trajectory in the upcoming full earnings report to justify any sustained rally.