News

Published: Apr 7, 2023
Updated: Apr 7, 2023

HDFC Bank Surpasses Its Target with Record Deposits in Q4 FY23

HDFC Bank, India's largest private sector lender, has set a new record by collecting over ₹1.5 trillion in deposits during Q4 FY23, exceeding its target of ₹1 trillion for a quarter. The bank's deposit base has reached ₹18.88 trillion, with a YoY growth rate of 21% and a sequential growth rate of 8.7%. Although the bank has fallen short of its yearly target of ₹4 trillion for deposits, it has managed to collect ₹3.24 trillion, a 45% increase from last year.

Growth and Targets

HDFC Bank's deposit growth is significantly higher than the industry, which is growing at around 10%. The bank's yearly target of ₹4 trillion in deposits is crucial to maintaining its sustained growth of 18-20% on the asset side, which requires approximately ₹3.5 trillion in deposits. The bank had earlier gathered over ₹1 trillion in deposits in a quarter only once since 2015.

Loan Books

HDFC Bank has recorded double-digit growth across lending verticals. Domestic retail loans rose by 21% YoY and 5% QoQ, while commercial and rural banking loans jumped by 30% YoY and 9.5% QoQ. Corporate and other wholesale loans increased by 12.5% YoY and 4.5% QoQ.

Energetic Market Response

HDFC Bank's healthy deposit and loan growth during the March quarter led to a close to 3% increase in its share price. The bank's stock opened at ₹1,613 and climbed to a high of ₹1,656 during the day, closing at ₹1,654.10, up ₹43.75, or 2.72%.

Deposit Mobilization to increase further post merger with HDFC Ltd

HDFC Bank's record deposits in Q4 FY23 demonstrate the bank's continued strength and growth potential. Its yearly deposit target and impending merger with HDFC Ltd assets are expected to further increase deposit mobilization in FY24