HDFC Bank Shares Dropped Over 3% After Releasing Q1 FY25 Business Update

HDFC Bank today released its business update for the first quarter of the financial year 2025 (Q1 FY25), ended June 30, 2024. The report highlights significant growth across key metrics, with some adjustments made to account for the recent merger with HDFC Limited.

Loan Portfolio Expansion

HDFC Bank’s gross advances increased substantially by 52.6% year-on-year (YoY), reaching ₹24,870 billion as of June 30, 2024, compared to ₹16,300 billion in the same period last year. However, excluding the impact of the HDFC merger, organic loan growth remains healthy at 14.9% YoY.

Deposit Growth Remains Steady

Deposits reached ₹23,790 billion as of June 30, 2024, reflecting a growth of 24.4% YoY compared to ₹19,131 billion in the previous corresponding quarter. Notably, deposits remained relatively flat compared to March 31, 2024, indicating a stable deposit base. Excluding the merger impact, deposit growth stands at a respectable 16.5% YoY.

Segment-Wise Performance

• Retail Loans: Increased by ₹186 billion during the quarter, demonstrating continued strength in the retail lending segment.
• Commercial and Rural Banking Loans: Grew by ₹72 billion, suggesting positive traction in these sectors.
• Corporate and Other Wholesale Loans: Witnessed a decrease of ₹266 billion compared to March 31, 2024.

CASA Ratio and Liquidity

The Bank’s CASA (Current and Savings Account) ratio stood at ₹8,635 billion as of June 30, 2024, reflecting a modest growth of 6.2% YoY. However, a seasonal decline in current account balances is noted compared to March 31, 2024. Time deposits, on the other hand, exhibited significant growth of 37.7% YoY, reaching ₹15,155 billion.

On an average basis, the Bank’s advances under management grew by 54.1% YoY and 0.8% compared to the June 2023 and March 2024 quarters, respectively. Deposits also displayed positive growth, with a 25.2% YoY increase compared to June 2023 and a 4.6% rise from March 2024. The Bank maintained a healthy liquidity coverage ratio (average) of around 123% for the quarter.

On July 05, 2024, HDFC Bank shares opened at ₹1,688.95 and touched the day low of ₹1,665.55 at 09:30 AM.

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